Biden Renominates Powell: A Win for Central-Bank Independence

Policy

President Biden announces the nomination of Federal Reserve Chair Jerome Powell for a second four-year term in Washington, D.C., November 22, 2021. (Kevin Lamarque/Reuters)
The Fed chief isn’t perfect, but Jerome Powell has consistently demonstrated the most important characteristic for central bankers: independence from elected politicians.




NRPLUS MEMBER ARTICLE

J
oe Biden nominated Jerome Powell to lead the Federal Reserve for another four-year term today.

Biden was facing pressure from some progressive senators, including Elizabeth Warren, Jeff Merkley, and Sheldon Whitehouse, to nominate someone else. By not giving in, Biden prized the Fed’s independence over pleasing some members of his own party. For that he deserves commendation.

If we want to have a chance at bringing inflation back down, we need a central bank that is independent of elected politicians. It’s a widely accepted finding in economics research that central-bank policy controlled or heavily influenced by elected officials will have an inflationary

To Read the Full Story

You Might Like

Articles You May Like

Former NYC Mayor Bill de Blasio announces that he’s not running for governor
Democrats Don’t Care About ‘Our Democracy’—They Care About Winning
Progressivism: The Failure of a Mission
Rand Paul Drops DirecTV Subscription Over Conservative Censorship
Billionaire investor Chamath Palihapitiya says ‘nobody cares’ about Uyghur genocide in China

Leave a Reply

Your email address will not be published. Required fields are marked *