Biden signals Powell's re-election? After Warren "shelled" Powell, a White House spokesman confirmed that Biden maintained confidence in Fed Chairman Powell

FX168 Financial Newspaper (North America) - Although U.S. Senator Elizabeth Warren slammed the Fed and its leaders earlier on Tuesday (Oct. 5), a White House spokesman said President Biden maintained confidence in Fed Chairman Jerome Powell.

White House deputy press secretary Karine Jean-Pierre told reporters who flew with Biden on Air Force One: "Yes, the president does have confidence in Powell at this point. ”

Warren said in a Senate speech on Tuesday that investment deals disclosed by Fed officials last year raised questions about Jerome Powell's leadership at the Fed. Warren said the deals raise "legitimate questions about conflicts of interest and insider trading."

Warren accused Fed Chairman Jerome Powell of leading the effort to weaken the U.S. banking system in September, vowing to oppose Powell's nomination.

At a hearing before the Senate Banking Committee, the Massachusetts Democrat cited several examples of Powell-led Fed playing down banking regulation in the wake of the financial crisis. Warren said deregulation could trigger another catastrophe, as the U.S. experienced during the collapse of Wall Street financial institutions in 2008-2009.

Warren stressed: "So far, Powell has been lucky. But the 2008 crash showed what happens when luck runs out. The seeds of the 2008 financial crisis were planted years in advance by major regulators such as the Federal Reserve, who refused to restrain big banks. ”