The most important man in Washington may not be Trump or Biden

10/07/2020 Business, Technology



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Trump’s decision to halt the stimulus talks on Tuesday, before backtracking a bit, shows that investors, consumers and businesses may not be able to depend on the White House and Congress for more financial help. But Powell and the Fed have been doing everything they can to prop up the economy.

Powell’s swift actions have earned him praise from many economists and investment experts on Wall Street, and it is a key reason there is hope that either Biden or Trump will nominate him for a second term as Fed chairman. His current term. four-year term will expire in February 2022.

“Powell should get a second term if he wants to. He deserves credit for the speed and scale of the Fed’s response to Covid-19,” said Larry Adam, chief investment officer at Raymond James.

Questions about Powell and the future of the Fed were not raised in the presidential debate last week and spokespersons for both candidates did not comment to CNN Business on whether they would reappoint Powell to a second term as Fed chairman.

Trump had criticized Powell before the pandemic for not moving fast enough to cut rates, but has since praised the Fed chief’s response to Covid-19.
Biden has not specifically commented on Powell’s future. But Biden has already tweeted that he would ask Dr. Anthony Fauci, the director of the National Institute of Allergy and Infectious Diseases, to stay and help manage the response to the pandemic if elected, so that Biden feels the same about Powell and his management. of the economic response to the coronavirus.
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“Powell has done a good job. He has been very decisive and has responded quickly and without hesitation,” said George Calhoun, professor of quantitative finance at the Stevens Institute of Technology.

“When the crisis hit, Powell did his best and turned on the taps. I’m not sure what would be rational to have someone totally different at the Fed. Monetary policy has been effective,” Calhoun added.

Biden’s former boss faced a similar decision after the 2008 election. President Obama decided to stay with Fed Chairman Ben Bernanke, who was first appointed by President George W Bush and nominated him for a second term in August 2009 in order to continue to lead the Fed’s response to the global financial crisis and the Great Recession.

“If Trump wins, Powell should be the pick and Biden would probably want to keep it going. We need lower rates for longer,” Adam said.



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