The New York Times is out with an article on Fed Chairman Jerome Powell:
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Powell cultivated deep Congressional ties anticipating political backlash.
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GOP Senators Tillis and Thune publicly backed the Fed Chair, support went beyond what Powell expected
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Even critic Kevin Cramer credits Powell’s relationship-building skills
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Trump may rethink his nominee choice amid Senate pushback
When the Justice Department launched a criminal investigation into Jerome Powell on Jan. 9, the White House likely expected the Fed Chair to fold but he fought back and appears to have won. Now the question is whether he’s more inclined to remain as a Fed governor for another two years after his term as Chair ends in May.
The report highlights how he built ties on Capital Hill for years and that helped generate the strong response — including from Republicans — about potential criminal charges. Senator Thom Tillis has threatened to block any new Trump nominee, and Majority Leader John Thune is backing Powell.
What happens in May? Powell’s term as Chair ends, but his term as a Governor runs for another two years. While some, like Jim Cramer, have suggested an “elegant” exit where Powell resigns to avoid indictment, Powell appears to be digging in.
There was a telling comment from highly-respected former Fed vice chair Don Kohn who said:
“If he thinks that his resignation as governor will endanger the institution and its independence, he’d be tempted to stay on,”.
Powell is described as an institutionalist, something we’ve seen before. If Powell says on the board, he will continue to vote for the remainder of his term in what could be a swing vote if Trump continues to try to stack the Fed with yes-men.
The report also noted that Kevin Hassett is ‘a front runner’ and highlights Trump’s comments today about Hassett likely remaining in his job.
“I actually want to keep you where you are, if you want to know the truth,” he said to Hassett at an event.
