She credited the move by Dallas Fed President Robert Kaplan and Boston Fed President Eric Rosengren to sell the investments in question, but said a decision 'made amidst an ethic firestorm' left no guarantee 'that Fed officials are acting solely in the public interest, not based on their own financial interests.'

Warren, a member of the Senate Banking Committee, which will provide the initial vetting of the nominee, voted against Powell as Fed chair four years ago, has criticized the Fed's approach to financial regulation on his watch and has yet to state an opinion about his possible renomination. īut unless change comes quicly, Warren's direct demands set up a possible clash with a key Democratic lawmaker when Biden's eventual Fed pick goes for Senate confirmation. Powell has moved to do so, launching a broad review of the Fed's rules governing investments by senior officials. economist at SGH Macro Advisors and an economics professor at the University of Oregon. “Institutionally, it’s a bad look,” said Tim Duy, chief U.S.

It is the type of moment that requires deft communication at the Fed chair's post-meeting press conference - now muddled by likely queries about his colleagues' investing habits and the possible blow to public trust. The Fed meets next week and is expected to take a potentially decisive step that flags likely changes to some of its pandemic crisis programs at an upcoming meeting. 15,' is at a minimum a distraction to Powell at a time when he is steering the Fed through complex debate over monetary policy.

That would match a point in the calendar when the last two Fed chair appointments have been announced.ĭemocratic Senator Elizabeth Warren's Wednesday letter to the Fed's 12 regional presidents asking them to 'impose strong and enforceable ethics and financial conflicts of interest rules' and send her an action plan 'no later than Oct. Powell remains favored for renomination by President Joe Biden, and if history is a guide a decision may come in the weeks between the Fed's policy meeting next week and its two-day session on Nov.

American headway 1 pdf