FOR IMMEDIATE RELEASE
Nov. 22, 2021
Powell Renomination is a Major Disappointment for Wall Street Reformers
Statement of Americans for Financial Reform:
President Biden’s renomination of Jerome Powell to chair the Federal Reserve Board is a major disappointment to those of us who have fought for tougher regulation of Wall Street as a key tool for protecting financial stability and building a more just and sustainable economy.
The Fed needs to steer a new course that begins with a reversal of the deregulation of the Trump era that took place on Powell’s watch. This work must continue with pro-active regulation and supervision of Wall Street to tackle the dangers posed to everyday people and the stability of the financial system by excessive risk taking and concentrated corporate power.
The Fed must prioritize racial and economic justice. It cannot continue its historical pattern of enabling speculation in financial markets and then bailing Wall Street out while everyday people suffer.
If Powell is confirmed to a second term, he also needs to stop blocking progress on confronting the systemic risk posed by climate change, and start using its authority to address this increasingly devastating threat.
The Fed’s longtime double standard of being creative and flexible in response to financial industry needs, while remaining passive about those of families, communities and the common good, needs to change.
We appreciate the nomination of Lael Brainard to serve as vice chair, but the failure to nominate a vice chair for supervision with a strong record on financial regulation in the public interest, is a serious problem. President Biden should move quickly to fill all remaining vacant seats, and any new seats that open, with a diverse set of candidates, and break decisively from the approach of drawing senior officials from Wall Street.