End of Jerome?
Jerome Powell has become a household name in the finance area. Ever since former President Donald Trump appointed him in 2018 as the chair of the Federal Reserve, he has steered the economy into steady waters. He’s received bipartisan support for his actions, and his job during the COVID-19 pandemic has been spectacular. More importantly, for a man who is almost 70 years old, he has garnered the support of the youth population due to the 2020 stock market rally, becoming a meme on multiple platforms.
However, Powell’s term ends in 2022, and it’s up to President Biden to reappoint him. There are roadblocks ahead, and one of them is the recent Fed scandal. In the past month, it was uncovered that two regional Fed Presidents made bets on stocks and real estate during the COVID-19 pandemic, which isn’t great to hear since they knew about the type of moves the Fed would do beforehand. They ended up resigning, but opponents have blown this scandal up as a reason for someone else to be nominated. Powell’s main political opponent is Senator Elizabeth Warren, who was the only one to vote no for his appointment in 2018. She isn’t necessarily running, but instead is promoting other candidates. The other major candidate is Lael Brainard, but she could also hold responsibility for the Fed scandal as it’s her job to see if Fed Presidents are eligible for their job. Either way, it’s very likely that Biden will reappoint Powell, but anything is possible. Do you think Powell will be reappointed?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.