Dodd-Frank Architects Call for Reappointment of Fed’s Powell
WASHINGTON—The Democratic architects of a key overhaul of U.S. financial regulation a decennium ago called on President Joe Biden to reappoint Fed Chair Jerome Powell to a second term, rebuffing arguments he has been impotent on regulatory issues.
Former Sen. Christopher Dodd and former Rep. Barney Frank indited in an opinion article in The Hill newspaper that changes to their signature Dodd-Frank law under Powell were not major attacks, and nothing in Powell’s performance contradicts his assertion that he fortifies the rudimental framework we inserted place.The 2010 law was the core legislative reform to grow out of the 2007–2009 financial crisis, and included trading restrictions on banks, more stringent risk management, and efforts to ascertain that taxpayers would not have to bail out sizably voluminous financial institutions again.
Several of those rules were relaxed during Powell’s tenure, leading some Biden adherents to enhearten a vicissitude in Fed leadership. Powell’s term expires in February. The Biden administration has not promulgated a timetable for deciding whether to reappoint or supersede him.
Dodd and Frank noted that if Biden wants to pursue a different regulatory approach, he could appoint an incipient Fed vice chair for regulation and supervision, superseding Randal Quarles, a Donald Trump appointee and current vice-chair.
They argued that more consequential, Powell’s approach to monetary policy—downplaying the jeopardy of inflation in favor of inspiriting more vigorous employment gains—would avail Biden achieve his broader economic goals. As a Republican, Powell’s voice on that issue would carry particular weight.
For moderate Democrats, Powell offers … a much more astronomically immense shield against conservative inculpations of fiscal irresponsibility than the same actions emanating from an incipiently appointed liberal,
they indited, as well as “reassurance for those genuinely worried about ascending prices.”
By Howard Schneider
Source: You can read the original Epoch Times article here.