Federal Reserve

An Open Letter to Fed Chair Powell: Recuse Yourself from Basel III Endgame

Before Federal Reserve Chair Jerome Powell talks monetary policy at the Jackson Hole Economic Symposium, RDP wants to remind people how awful Powell has been—on interest rates, climate risk, and financial regulation.

By instructing regulators to acquiesce to the big bank CEOs who have led a historically fierce campaign in opposition to the Basel framework, Powell is practically inviting financial industry executives to quash, through negative public feedback, any regulation they don’t like.

Every economic indicator is pointing to the need for an immediate interest rate cut. The Fed is supposed to act in accordance with available data irrespective of potential political impacts. So why isn’t it?

JPMorgan Chase CEO Jamie Dimon understood that no Vice Chair for Supervision could make Jerome Powell’s Fed take regulation seriously. Why didn’t Matt Yglesias?

By refusing to endorse new bonus pay regulations, the Fed Chair has once again stood in the way of corporate accountability.

The Treasury Secretary Is Right To Point Out Summers’ Record Of Failed Predictions, And Other Democrats Should Too.

Biden erred with his renomination of Powell, but if he gets another chance, he must choose a central bank leader dedicated to properly tackling the myriad challenges facing the Fed, which range from price stability and full employment to financial stability and climate-related financial risk.

One year after the collapse of Silicon Valley Bank, Federal Reserve chair Jerome Powell is obstructing the finalization of tougher capital requirements for banks — and increasing the chances of more turbulence.

In October of 2021, the Federal Reserve was embroiled in scandal. The heads of the Boston and Dallas Feds resigned following personal trading scandals that raised concerns about conflicts of interest and lax ethics guidelines. Further reports of potentially inappropriate trading by Chair Jerome Powell and Vice Chair Clarida rocketed across the business media due to these officials’ immense access to sensitive financial information and influence on monetary policy. Despite their decidedly questionable profiteering off pandemic panic, Powell and Clarida have since had their reputations effectively laundered by the media in a whitewashing effort that has attempted to clear them of all wrongdoing. To make matters worse, the Fed’s FOIA office is doing everything in its power to prevent internal documents relating to the scandals from reaching the light of day.

Soon after Biden renominated Powell, the ostensibly dovish Fed chair embarked on the most intense and sustained series of rate hikes in decades. We were told that this wouldn’t happen!

Inflation is falling, but Jerome Powell has nothing to do with it. Our democracy and climate face mounting instability—and he has everything to do with that.