Senior Democratic Economist Stiglitz Says Fed’s Powell Should Go

WASHINGTON—For U.S. President Joe Biden to be true to his agenda he should not renominate Jerome Powell as Federal Reserve chair, Nobel prize-winning economist and longtime Democratic adviser Joseph Stiglitz said in an interview that laid out the case for a remake of the Fed’s leadership. “People have given Powell a lot of kudos because he has supported the economy through the pandemic … On one hand I agree with that,” Stiglitz, now a Columbia University professor, said in a Friday phone interview with Reuters. “On the other hand that is a bare minimum for qualification. Almost anybody reasonable would have done something similar,” Stiglitz said of the near-zero interest rates and monthly bondbuying Powell has maintained since March of 2020. Rather, Biden should look at Powell’s looser approach to financial regulation, his reluctance to build climate-related issues into the Fed’s bank oversight, and check his “gut” on whether Powell …Read More

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