Progressives To Biden: Give Fed Chair Jerome Powell The Boot

Three members of the “Squad” group of progressive U.S. House of Representatives Democrats have called on President Joe Biden not to appoint Federal Reserve Chairman Jerome Powell to a second term.

What Happened: U.S. Reps. Alexandria Ocasio-Cortez (D-NY), Rashida Tlaib (D-MI) and Ayanna Pressley (D-MA) released a statement to Politico calling for a new central bank chairman after Powell’s term expires in 2022.

“As news of the possible reappointment of Federal Reserve Chair Jerome Powell circulates, we urge President Biden to re-imagine a Federal Reserve focused on eliminating climate risk and advancing racial and economic justice,” the legislators said in their statement. “We urge the Biden Administration to use this opportunity to appoint a new Federal Reserve Chair.”

Although the legislators stated Powell “has made positive changes” in placing a stronger emphasis on driving the economy to full employment, they faulted him for not being aggressive enough on climate change and claimed, “we need a leader at the helm that will take bold and decisive action to eliminate climate risk.” They also expressed discontent over Powell’s deregulating the nation’s largest banks.

“Weakening financial regulations that were specifically created to prevent such a disaster from happening again risk the livelihoods of Americans across the country,” they wrote. “To move forward with a whole of government approach that eliminates climate risk while making our financial system safer, we need a Chair who is committed to these objectives.”

Related Link: Most Americans Blame Biden For Mismanaging Afghanistan Crisis: Poll

What Else Happened: Powell, a Republican, was nominated to the Federal Reserve Board of Governors in 2012 by President Barack Obama and was appointed by President Donald Trump to replace Janet Yellen, the first woman to chair the central bank; Yellen became Secretary of the Treasury earlier this year.

The legislators’ statement follows a letter to Biden by Revolving Door Project, a coalition of 22 economic, racial, labor and environmental justice organizations who sought the appointment of central bank leaders who were committed to addressing economic racial inequalities.

“We urge you to nominate governors who will consider not only traditional economic metrics, such as the unemployment and inflation rates determined by the Bureau of Labor Statistics but who will also directly weigh factors like the Black unemployment and underemployment rates and the racial wealth gap when setting new policies or assessing the effectiveness of old ones,” they wrote.

Photo: Board of Governors of the Federal Reserve System.