Progressives led by AOC call for Biden to replace Fed Chair Powell

[Yo_Mama_Been_Loggin]

Source: CNN

Progressive Democrats, including New York Rep. Alexandria Ocasio-Cortez, are calling on President Joe Biden to give the Federal Reserve a sweeping makeover by replacing Jerome Powell as chairman.

"We urge President Biden to reimagine a Federal Reserve focused on eliminating climate risk and advancing racial and economic justice," the lawmakers said in a statement Tuesday morning.

In addition to Ocasio-Cortez, the statement was issued Reps. Rashida Tlaib of Michigan, Ayanna Pressley of Massachusetts, Mondaire Jones of New York and Chuy Garcia of Illinois, all members of the Congressional Progressive Caucus.

Powell, a Republican and former investment banker, was nominated to lead the powerful Federal Reserve by former President Donald Trump in 2017, who later sharply criticized his handpicked chairman. Powell's term as chair expires in February, and the White House has not said whether he will be reappointed.



Read more: https://www.msn.com/en-us/news/politics/progressives-led-by-aoc-call-for-biden-to-replace-fed-chair-powell/ar-AANWjBw?li=BBnb7Kz

[deizo]

1. Along with Dejoy!!

Why is Dejoy still the head of usps? He has given President Biden more than enough cause to fire him just like he did with social security!

[zipplewrath]

5. Can't

The board is the only entity that can, and they are still dominated by Trump appointees. It's close though. One more appointment by Biden and then Dejoy can be gone.

[deizo]

14. yes he can with cause!

thanks to the supreme court COLLINS ET AL. v. YELLEN & Seila Law LLC v. Consumer Financial Protection Bureau


A democrat a think he name is Bloom he is trump appointee he is just registered as democrat that is why the board hasn't been able to get rid of him

[onenote]

31. I suggest you go back and re-read the cases you've cited.

Neither one involved an agency head who is appointed by a board of directors, not the President. In fact the Court made clear it was focusing only on the factual situation before it -- the power of the president to fire an agency headed by single person (not a commission) who is appointed by the President with Senate confirmation.

[deizo]

33. The cases were about presidential power over exertive agencies

the sc. didn't answer ether way on what agencies the president can or can not unilaterally act but with those two cases I would say try it!

[onenote]

41. Ironically, it is the conservatives wing of the Court that wants the executive

to have unfettered "at will" termination authority.

[quakerboy]

36. Can

Board members can be fired.

If a president wanted to get rid of a corrupt person like dejoy.

Have we heard Biden say he wants dejoy out yet?

[George II]

6. DeJoy is still head of the USPS because one Senator blocked four of Obama's appointments...

....to the Board in 2016, a few months before he left office.

[bucolic_frolic]

2. My take on Powell and reappointment

Powell is where he is because he serves banks' interests. He is an old time Fed Chair, more in line with Greenspan than Bernanke. I think he was a terrible choice for Fed Chair. It's not that I want the Fed to adopt a progressive agenda - they really don't have political policy tools to any extent at all - it's that they're serving banks, billionaires, and bubbles more than they're serving the financial system. They created these bubbles. Powell has been Bernanke on steroids. I think it reckless to feed housing and stock bubbles at the same time.

Yet we're stuck with Powell. I believe he will be reappointed because he owns the blame for the consequences of the Reckless Monetary Decade. If Biden replaces him, Biden will own it. Far easier to let the blame fall on Powell, and by implication, the man who appointed him the first time - TFG.

[former9thward]

34. No one will buy that.

If Biden re-appoints Powell he owns the appointment.

[lonely bird]

3. Um...

No.

The ability to completely alter the entrenched institutions does not exist with the Fed. It takes congressional action as well as a massive PR campaign.

This concept is on a direct collision course with deeply held theomythology.

It is not that Powell needs to go. That is symptomatic. The cancer is far deeper.

[George II]

4. A few questions to those calling for Biden to replace Powell:

1. Do they have someone in mind to replace Powell, or do they just want someone different?
2. Do they understand that it's not the function of the Federal Reserve to "eliminate climate risk"?
3. Do they understand that it's also not the function of the Federal Reserve to "advance racial justice"?
4. Is there anything specific that they'd like a new Chairman to do - specific, not vague concepts - with the Federal Reserve?
5. Finally, just what does "reimagine the Federal Reserve" actually mean?

Many on both sides of the aisle think that Powell has done a very good job under the circumstances during his term as Chairman under trump.

Generally when one calls for changes of leadership, they have something in mind other than just changing leadership. Just what are they looking for a new Chairman to do?

[zipplewrath]

8. Okay, some "answers"

1. Do they have someone in mind to replace Powell, or do they just want someone different?

Yes and no. It's a bit of Washington inside the beltway politics. If a replacement is named, it becomes person A versus B. By calling for a replacement, it leaves the discussion as whether the current occupant is good enough.

2. Do they understand that it's not the function of the Federal Reserve to "eliminate climate risk"?

But they can have SOME role, however small.

3. Do they understand that it's also not the function of the Federal Reserve to "advance racial justice"?

Not sure I'd agree with that. They have been involved in the past in promulgating/tolerating racial injustice, so they can be involved in advancing the reverse. At the very least they should be on the lookout for things like redlining and addressing it in some way when they find it.

4. Finally, just what does "re-imagine the Federal Reserve" actually mean?

Well, roughly what you AREN'T doing. That is, to assume and assert that its current mission is all that it should/can do and in fact imagine what it could/should do.

[George II]

11. IOW, if those are their intentions, they want a new Chairman but can't specifically say why.

[zipplewrath]

13. Yes, they can

They just don't want the discussion to be about possible replacements, just upon the results being achieved by the current incumbent.

[George II]

15. Here is their statement. My previous comment stands. They want a new Chairman, but are unspecific..

...about why or what a new Chairman should do.

STATEMENT: Reps. AOC, Tlaib, Pressley, García & Jones Urge Biden to Replace Powell as Federal Reserve Chair

WASHINGTON, D.C. - Representatives Alexandria Ocasio-Cortez, Rashida Tlaib, Ayanna Pressley, Mondaire Jones and Jesús G. “Chuy” García are releasing a statement urging President Biden to appoint a new Federal Reserve Chair rather than reappoint Jerome Powell. The full statement follows.

“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. This consequential appointment has the potential to remake the composition of the Board of Governors. While the Federal Reserve has made positive changes to its approach to full employment reflected in the new monetary policy framework, our concerns with Chair Powell’s track record are two-fold. Under his leadership the Federal Reserve has taken very little action to mitigate the risk climate change poses to our financial system. To illustrate, the Federal Reserve received a D- rating for its approach to climate risk policies from Positive Money’s Global Central Bank Scorecard, placing it at the bottom of the G20 Central Banks. At a time when the Intergovernmental Panel on Climate Change is warning of the potential catastrophic and irreversible damage inflicted by a changing climate, we need a leader at the helm that will take bold and decisive action to eliminate climate risk. Secondly, under Chair Powell the Federal Reserve has substantially weakened many of the reforms enacted in the wake of the Great Recession regulating the largest banks, including capital and liquidity requirements, stress tests, the Volcker Rule, and living will requirements. During the 2008-financial crisis, millions of Americans lost their homes and jobs, and many have failed to fully recover. Weakening financial regulations that were specifically created to prevent such a disaster from happening again, risks the livelihoods of Americans across the country. 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. We urge the Biden Administration to use this opportunity to appoint a new Federal Reserve Chair.”

###

[zipplewrath]

16. Unspecific on purpose

to keep the conversation about the goals, and not the person (since there isn't any single one).

[sheshe2]

17. I am confused here.

Since when does the Fed handle policy change on climate and racial justice?

[George II]

22. They will when they're "reimagined"!

[NurseJackie]

24. Nancy needs to have a meeting in her office for a civics lesson...

[sheshe2]

26. Imagine that.

[George II]

28. Hmmmm, imagine that?

[jmbar2]

7. The Fed does monetary policy, not industrial policy

Fed key responsibilities
- Conducting the nation's monetary policy by influencing money and credit conditions in the economy in pursuit of full employment and stable prices.

- Supervising and regulating banks and other important financial institutions to ensure the safety and soundness of the nation's banking and financial system and to protect the credit rights of consumers.

- Maintaining the stability of the financial system and containing systemic risk that may arise in financial markets.

- Providing certain financial services to the U.S. government, U.S. financial institutions, and foreign official institutions, and playing a major role in operating and overseeing the nation's payments systems.

https://www.federalreserve.gov/faqs/about_12594.htm

AOC is undermining her credibility with statements like this.

[zipplewrath]

9. And now you understand "re-imagine"

Asserting that the fed CAN'T be something different than it currently is, is exactly the opposite of re-imagining.

[George II]

23. I need me some Temptations!

[George II]

12. Exactly. You're more specific about why what they're implying (vaguely) can't or shouldn't be done.

[sheshe2]

18. Thank you.

[stopdiggin]

27. it's a fairly big job

in and of itself.

And - there is ample reason for building in a certain amount of independence and distance ...

[greatauntoftriplets]

10. I'm not sure that the members calling for this understand what the Fed does.

And who do they think should replace Powell?

[zipplewrath]

19. Actually

They are suggesting that the fed should be doing something other than what they are currently doing.

[sheshe2]

29. Okay.

Is congress going to walk in and change their job descriptions?

[NurseJackie]

39. That's hysterical.

[tirebiter]

20. Powell's record of pursuing policies that lower inflation is admirable

Inflation kills socialism. Janet Yellman, a Keynesian economist, needs Fed policies that hold down inflation. Programs that deal with climate change need inflation minimized.

[stopdiggin]

25. so, you're saying - a functioning economy

actually has a place in furthering social justice goals .. ?

----- -----

but, but ... that is so .. pedestrian!

[Beastly Boy]

30. They can't be serious!

If their statement has been reported accurately, I am totally blown away over how misinformed it is.

Biden cannot "reimagine" the Fed. He is prohibited by law from doing so. Likewise, the Fed cannot "reimagine" their mission, which is written, in great detail, into law. The Fed is being regularly audited to make sure no "reimagining" takes place. Only Congress can make changes in laws that govern the Fed. Are the aforementioned lawmakers aware that it is THEIR job, and not Biden's,to "reimagine" the Fed? Doesn't appear so!

Furthermore, if hell freezes over and the progressives led by AOC manage to muster enough support among their colleagues to change the law and mandate the Fed to move in the desired direction without creating conflicts with the Fed's previously defined missions, Biden can only remove the Fed Chair for "good cause". It is also against the law for Biden to reimagine away the limits of his powers.

[betsuni]

32. [phone]

[brer cat]

37. Good post.

[oldsoftie]

43. Someone needs to inform Rep AOC of reality. Not that it ever matters.

Remember when Trump had to be told he couldnt just replace the Chairman?
SHE should remember

[Sewa]

35. OMG! Some here want to retain the Trump puppet

as Fed Chairman. Biden should have politely asked him to step down a few months ago.

Powell has been terrible, caving in to Trump not to raise interest rates. When the economy was clearly overheating.

Any Fed Chairman that would surrender their independence over a tweet isn’t fit to hold the position.

Show this man the door ASAP

[mathematic]

40. I think you're confused on which party generally supports easy monetary policy

So I'll tell you: it's ours.

Keeping rates low in order to get full employment at the risk of more inflation is what Yellen's done, it's what's Powell's done, and it's 100% what the progressive critics of Powell want done too.

[Calista241]

42. Powell was originally appointed to the Fed Board of Governors by Barack Obama in 2011. n/t

[madville]

44. This is when you just smile and nod

and say "That's nice". If our monetary policy and such was left up to that group we'd be like Venezuela within a few years.

[roamer65]

45. I don't see the President making a change in this case.

I think he will re-nominate Powell, if he has the support of Secretary Yellen.

[FlyingPiggy]

46. I'm not sure why EVERY person placed by tfg hasn't been removed.

They should ALL have been removed by day 2.