Sherrod Brown, chairman of the U.S. Senate Banking Committee, told Bloomberg that he expects U.S. President Joe Biden to announce a series of Nominations for the Fed's Board of Governors after deciding on the Fed's chairmanship.
The Ohio Democratic Senate said, "I think Biden is prepared to nominate up to four Fed board candidates." Brown revealed that he had spoken to Biden on the matter, but he could not predict Biden's final decision.
Brown stressed that the vacant vice chairman for the oversight seat in addition to the chairman is "really, really, really important, and he has recommended several people to Biden but declined to name them.
Big blood exchange
Asked if he wanted the fed's current chairman, Powell, to be nominated for re-election, Brown said it was Biden's decision and that he might want to put labor at the center of economic policy. "Four nominations may or may not include Powell."
Brown reiterated that he thinks Powell is doing a "pretty good job" in monetary policy but "not doing enough" to regulate Wall Street and climate policy. "We get along very well, and he himself knows the criticism of him about financial regulation and climate change," Brown said. ”
Brown, unlike his fellow senator Elizabeth Warren, said late last month that she would not support Powell's re-election. Warren argues that Powell's Record of Wall Street regulation makes him a "dangerous" candidate.
On the Republican side, Heavy Sen. Scott also said he would not support the re-nomination of Powell. In his letter to Powell, Scott said, "American families cannot continue on a dangerous path of rising inflation, broken supply chains, and continued labor challenges." ”
insider trading?
When the Fed deployed accommodative monetary policy to ward off the coronavirus shock last year, a number of senior officials were involved in financial transactions, including Dallas Fed President Kaplan and Boston Fed President Rosengren who announced their resignations.
Powell's re-election path has been overshadowed by the embarrassing scandal, with the Federal Reserve announcing last week that it would impose sweeping restrictions on officials buying individual stocks and bonds. "We're probably going to have a hearing on this matter soon," Brown said, "and I don't know if there's any more people caught up in it." ”
Kaplan and Rosengren "may not have violated" any rules or laws, but reiterated his support for legislation prohibiting public officials, including members of Congress and the president, from trading in company stock. The scope of this ban should now include public officials as well as Fed board members and regional Fed chairmen.
However, according to the Global Network, the transaction records released by Pelosi, the speaker of the House of Representatives who are in the same party as Brown, show that most of the securities investments made by her family have been stable. Although Pelosi denied "insider trading", her net worth of over 100 million yuan still aroused widespread doubts in public opinion.
Brainard
At present, the outside world believes that if Powell is not nominated, then the chairman is very likely to fall on the current council member Brainard, who is also the "king" candidate of Warren and the Democratic progressives.
However, Brainard is responsible for the supervision of regional banks on the council, and she is not to blame for the trading scandals of regional officials. Brown commented, "The ultimate head, the Fed chairman himself, did not pay attention to the matter, and others may not notice." ”