Federal Reserve Chairman Jerome Powell has won over a number of influential Senate Democrats who are prepared to back him for another term, though a key pair remain holdouts and are unhappy with his leadership on regulation.
A number of Democrats praise his handling of the coronavirus crisis in particular and say they trust President Joe Biden’s judgment should he choose him for another term. Powell’s present term expires in February.
“I think he’s done a very good job of navigating some very, very difficult times,” said Sen. Richard Blumenthal of Connecticut, who voted against confirming Powell for the post in 2018 and is known for backing strong regulators. “I would support the renomination of Chairman Powell.”
Bloomberg News
Sen. Jack Reed of Rhode Island, a senior Democrat on the Banking Committee, said Powell’s done a “very credible job” and has maintained the Fed’s independence at a critical moment. But he pointed out that others are in contention, too.
“He is one of several I think compelling candidates. The president will have a tough choice,” he said.
Sen. Dick Durbin of Illinois, the No. 2 Democratic leader, earlier Monday said he had a favorable view of the central bank chief, potentially giving him a powerful ally in his corner.
“I have a good impression of what he’s done and who he is, and that hasn’t changed,” Durbin told Bloomberg News when asked whether he thinks Biden should renominate Powell.
Durbin, who voted to confirm Powell after he was nominated by then-President Donald Trump, is the Democrats’ chief vote counter in the Senate and has significant influence in the chamber. His comment comes after some other key Democrats, including Senate Banking Chair Sherrod Brown of Ohio and Sen. Elizabeth Warren of Massachusetts, have criticized the chairman over his stance on bank regulation.
Warren told reporters last Thursday that she is “concerned when I see the rules weakened rather than strengthened,” adding that she has repeatedly pressed Powell on regulation. Both Warren and Brown laid out a laundry list of grievances when Powell appeared before the Senate Banking Committee earlier this month, and each said last week they hadn’t decided whether they could support a second term for him as chair.
Asked Monday whether she’d be satisfied with a possible scenario where Powell stays as chairman but stronger regulators are installed in the Fed’s vice chair positions, Warren replied, “I’m not going there.”
“The Fed needs strong leadership, and while it’s important to see all the players on the Fed, there is nothing quite like the role of leadership,” she said.
Powell has been making the rounds of the Capitol in recent weeks, meeting with senators of both parties, including Senate Finance Chairman Ron Wyden. The Oregon Democrat praised him in a statement to Bloomberg.
“Chairman Powell has done a lot of good things leading the Federal Reserve through this economic crisis, consistently pushing for robust economic relief for jobless and vulnerable Americans,” Wyden said last week. “Ultimately this is President Biden’s call, and I trust his judgment.”
Democratic Sen. Mazie Hirono of Hawaii said she, too, would support whomever Biden picks, whether it is Powell or someone else.
“I found him to be pretty independent even during the Trump years, so I wouldn’t have any problems with that,” Hirono said when asked whether Biden should renominate Powell. “But my main point is that I would support who the president wants.”
Powell was confirmed to a four-year term as Fed chair in 2018 on an 84-13 vote. Vice President Kamala Harris, then a senator from California, was among those who voted against.
Powell has broad support for his renomination among top Biden advisers, but White House officials have not yet discussed with Biden a potential Powell renomination or replacement, Bloomberg reported last week. A decision isn’t expected until September at the earliest.