How Biden Can Keep Jerome Powell While Making Progressives Happy

Stephanomics

The Federal Reserve is theoretically above the fray in Washington, but in these hyperpartisan times both Democrats and Republicans are keen to keep the chair's seat in their camp. As a result, President Joe Biden has a tough decision to make this fall in whether to retain the central bank's current chair, Jerome Powell, who happens to be a Republican. On this week's podcast, host Stephanie Flanders delves into Biden's options with Bloomberg Fed reporters Craig Torres and Rich Miller.

Also on this week's episode, Bloomberg senior editor Brendan Murray cruises the River Thames to share how the Port of London, once the world's busiest, is regaining some of its past glory. And, Zurich-based economics reporter Catherine Bosley, Dublin-based reporter Peter Flanagan and Dublin bureau chief Morwenna Coniam explain why European tax havens are so stressed over a proposed global minimum corporate tax rate.

That U.S. politicians are debating Powell's fate may be a bit perplexing, given his fans in both parties and that many contend he did a good job steering the economy through the first 18 months or the pandemic. Still, some progressives fault him for being too lax in regulating Wall Street and not vocal enough when it comes to income inequality and Black unemployment. If Biden sticks with Powell, it would be another signal that he's serious about bipartisanship. One possible maneuver discussed on this podcast: keep Powell in place, but fill three other board seats with candidates more to the left's liking.

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