+9 C°
Traffic jam:   0

The chances of Jerome Powell being reappointed have fallen

5 October 2021
2 min.
The chances of Jerome Powell being reappointed have fallen

Chances of Jerome Powell staying on for a second term

Last week, Fed Chair Powell came under heavy criticism from Senator Elizabeth Warren. Market forecasts showed Powell's chances of reappointment declining. Here's what that could mean for the stock market and investors.

The term of current Federal Reserve (Fed) Chairman Jerome Powell expires in February and US President Joe Biden has yet to appoint him to a new four-year term.

Although Powell has strong bipartisan support, events in recent weeks have reduced his chances of reappointment.

Last week the central bank governor appeared before the Senate Banking Committee, where he argued that the Fed's response to the Covid pandemic was correct and outlined the state of the US economy. The report was heavily criticised by Senator Elizabeth Warren, who said she would oppose Powell's re-nomination.

Elizabeth Warren said: "Your record is of grave concern to me. You have taken action to make our banking system less secure and that makes you a dangerous man to lead the Fed."

Also on Friday, another Fed official came under scrutiny for illegal personal trading activities. According to Bloomberg News, Fed Vice Chairman Richard Clarida traded between $1m and $5m from bond funds into equity funds on 27 February 2020 the day before Powell issued a statement signalling imminent policy action amid a worsening pandemic. And while these trades are reportedly "planned rebalancing" by the Fed, they raise public suspicion because of recent precedents of Fed chiefs resigning over similar allegations.

While Powell is not directly responsible for the Fed's regional presidents, Clarida was on the Board of Governors of the Fed, for which he is responsible.

Warren has called for a ban on the ownership and trading of individual stocks by senior Fed officials.

As recently as a month ago, the odds of Powell's re-nomination hovered between 80% and 90%, according to the non-profit forecasting organisation PredictIt. However, following Warren's comments last week, those odds dropped to 61% before recovering slightly. On Monday, the site showed a prediction of an appointment at 63%. Among the candidates named by Warren: Lina Khan as head of the Federal Trade Commission and Rohit Chopra as head of the Consumer Financial Protection Bureau.

Persons6 and Companies5 in the news

Director of the Consumer Financial Protection Bureau
1 place
Chair of the Federal Trade Commission
2 place
Vice Chair of the Federal Reserve
3 place
Vice Chair of the Senate Democratic Caucus
4 place
6th Chair of the Federal Reserve
5 place
46th President of the United States
6 place
Bloomberg L.P.
5 place


Rating companies
159 Mention
Dow Jones
121 Mention
46 Mention
43 Mention
34 Mention
32 Mention
30 Mention


News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director
Died this year
Born this year