Two more Democrats urge Biden not to elect Powell for Fed chairman

Sense. Sheldon whitehouseSheldon Whitehouse: Senators Seek Defense Bill To Move Cyber ​​Security Measures Democrats Criticize Biden’s Supreme Court Commission That Manchin Is Prepared To Make Or Undo Biden’s Climate Pledge MORE (DR.I.) and Jeff MerkleyJeff Merkley Sanders backs Kaiser Permanente workers ahead of Monday’s strike Warren presses Biden on clemency for nonviolent cannabis convictions Democrats step up filibuster talks after voting rights setback MORE (D-Pray.) They are urging President BidenJoe BidenHouse Democrats push vote on social spending plan through Friday Fauci says all adults should ‘go get a boost’ Senate confirms Park Service director after years of sitting bosses MORE failing to nominate Jerome Powell for another term as chairman of the Federal Reserve, warning that his refusal to use the Federal Reserve to prepare the economy for the impact of climate change is a major problem.

Democratic senators join the senator. Elizabeth warrenElizabeth Warren On the money: House Democrats ready to rebuild better Warren calls for Trump’s planned deal to be investigated SPAC Amazon, Facebook and other big companies would pay more with the proposed minimum tax, says Warren’s office MORE (D-Mass.), Who are trying to alienate Biden from Powell, who was named president by President TrumpDonald Trump Republican Senate Candidate Says Fauci Is A ‘Mass Killer’, Should Be Imprisoned Instead Of A ‘Hero’ Rittenhouse Overnight Health Care – Presented By Emergent Biosolutions – Pfizer, The COVID-19 Pill Deal US Strike On The Money – House Democrats Ready To Build Back Better MOREand toward the election of Lael Brainard, the only Democrat on the central bank’s seven-member board.

“Jerome Powell refuses to recognize climate change as an urgent and systemic economic threat,” Whitehouse and Merkley wrote in a joint statement.

During his tenure, President Powell first ignored climate change and then resisted calls that the Fed use its tools to combat it, arguing that climate change ‘is really a problem that is assigned to many other government agencies, not so much to the Fed., ‘”they said.

Brainard, who is emerging as the favored candidate of progressives for the post of Fed chairman, on the contrary, says that the central bank has a responsibility to prepare large financial institutions for the economic shocks caused by climate change. .

Democratic senators noted in their statement Friday that Powell told lawmakers at a hearing earlier this year that “we are not and do not seek to be climate legislators,” summarizing his opinion on the role of the powerful central bank.

Whitehouse and Merkley argue that that’s out of step with the Biden administration’s focus on climate and what they see as the urgent need to address rising global temperatures immediately.

They say the Fed must act immediately, warning that the changing climate is making supply chain problems worse and increasing commodity price volatility.

“President Biden must appoint a Fed Chairman who will ensure that the Fed is fulfilling its mandate to safeguard our financial system and shares the Administration’s view that fighting climate change is the responsibility of all policy makers. That person is not Jerome Powell, ”the senators wrote.

Biden is expected to announce his decision on who should chair the Fed before Thanksgiving.

Whitehouse voted to confirm Powell as Fed Chairman in January 2018, when he replaced Janet yellenJanet Louise Yellen On The Money: House Democrats Ready To Build Better CBO Releases Plan Cost Estimate Biden McConnell And Schumer Seek Debt Ceiling MORE, who now serves as Biden’s Secretary of the Treasury. Powell received overwhelming support in the Senate, winning confirmation by an 84-13 vote.

Merkley was one of 13 votes against Powell’s nomination, along with Warren.

Warren, one of the top progressives on the Senate Banking Committee, has also spoken out vigorously against electing Powell to another term as Fed chairman, calling him “a dangerous man” to run the bank.

“His record gives me serious concerns. Time and again, he has acted to make our banking system less secure, ”he said at a hearing on September 28, announcing his opposition to him.

Brainard noted last month that he believes the Fed has a role in responding to the economic impacts of climate change and noted that the central bank is trying to project how climate-related economic shocks would affect the financial system.

“I anticipated that it will be useful to provide supervisory guidance for large banking institutions in their efforts to properly measure, monitor and manage material climate-related risks, following the example of several other countries,” he told a Fed conference.

But that position has put her at odds with the senator. Pat toomeyPatrick (Pat) Joseph ToomeyBlack Women Seek To Build On Achievements In Upcoming Election Watch Live: Republican Senators Present New Infrastructure Proposal Sasse Reprimanded By Nebraska Republican Party For Impeachment Vote MORE (Pennsylvania), the highest-ranking Republican on the Senate Banking panel, who said Thursday that “I have a lot of serious concerns about Gov. Brainard if she were to be nominated for the presidency.”

Toomey says it is “beyond the scope of the Federal Reserve’s mission to” use “financial regulation and supervision to advance environmental policy goals.”

“We urge you to refrain from taking additional action on climate-related risks that impose certain costs for an uncertain benefit,” he wrote in a letter to Powell earlier this year.

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