Powell Backed for Fed Chair by Authors of Dodd-Frank Bank Reform
(Bloomberg) -- The architects of the sweeping regulatory legislation adopted after the financial crisis backed Jerome Powell for another term as Federal Reserve chair.
Former Democratic Senator Chris Dodd and Representative Barney Frank said Powell’s reappointment would provide “strong support” for President Joe Biden’s comprehensive program for tackling the underlying social and economic problems facing the U.S.
Their support -- coming in an opinion article written for The Hill -- is noteworthy because a number of progressives have criticized Powell for rolling back some of the reforms initiated under the Dodd-Frank legislation and called on Biden to replace him as Fed chair.
“We acknowledge that Powell did implement some relaxation for the financial industry -- but we do not believe this outweighs the case for reappointing him,” Dodd and Frank wrote in an article published on Monday.
Powell’s term as chair ends in February. Bloomberg has reported that advisers to Biden are considering recommending that the president give Powell another four years. A decision is likely this fall.
©2021 Bloomberg L.P.