President Joe Biden has nominated Jerome Powell as Fed chairman for the second term.
Speaking at Nomination hearing Before the Senate Committee on Banking, Housing, and Urban Affairs, Powell said that Fed works for all the Americans and its decisions matter to every person, family, businesses as well as communities across United States.
Chairman Mr Brown said that Fed Chairman Jerome Powell is entrusted with the task of Growing the Economy for all the Americans and not just for the one who are at the top and protect that growth from the threats of the financial system e.g. risky wall’s street scheme, crypto bubbles and increasing climate disaster. Chairman Brown said during Nomination hearing Before the Committee on Banking, Housing, and Urban Affairs, U.S. Senate.
Answering question by Senator Mike Crapo on release of Fed’s digital currency Report, Powell has said The Federal Reserve’s long-awaited report on cryptocurrencies and central bank digital currencies (CBDCs) will be released. According to Powell the report will be consultative in nature and will be seeking inputs on variety of issues instead of taking positions.
On the issue of central bank digital currencies (CBDC), Toomey asked Powell that according to his understanding under the CBDC framework Americans will have retail accounts with Fed, which will make Fed a retail banker. From the historical experience we can see that Fed does not have experience, expertise and capabilities for performing the function of Retail Bank. Powell confirmed that Toomey’s observation is fair. On the query of whether a privately issued Stable coin can coexist with CBDC, Powell response was that well-regulated stable coins does not need to be precluded and can co-exist with CBDC.
Vice Chairman of the Federal Reserve Mr Richard Clarida has resigned following the insider trading Allegations. He has been under fire for making trades during the pandemic induced financial crises. His term was due to be expired on 31st Jan, 2022. Sen. Ossoff raised the insider trading issue and asked the Fed’s plan for preventing such future incidences. Powell replied that new system is being developed and it will put an end to the active trading by Fed’s senior officials and staff including members of Federal Open Market Committee (FOMC)
Jerome Powell said that he will make decisions with objectivity, integrity, and impartiality and keeping in view the long-standing tradition of monetary policy independence and Fed’s actions are in pursuit of achieving the goals set for Fed by the Congress.
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