The United States confirms Jerome Powell for a second term at the Federal Reserve

The US Senate confirmed Jerome Powell on Thursday for a second four-year term as head of the Federal Reserve (Fed), from where he will continue to try to combat inflation higher than USA. experienced in four decades.

The head of the US central bank received the support of the majority of senators with 80 votes in favor and 19 against.

Powell assumed the post of head of the Fed in 2018 after being appointed by then-Republican President Donald Trump (2017-2021) and, in November 2021, he was again nominated for the post by the current president, Democrat Joe Biden. .

Both Democrats and Republicans have praised Powell’s management during the economic crisis caused by the pandemic and in the face of which he has deployed an extraordinary monetary stimulus plan.

The US central bank kept interest rates in the range between 0% and 0.25% for two years to stimulate the economy; but it has already approved two consecutive raises.

Thus, the official interest rate of the world’s largest economy is now in a range of between 0.75% and 1%

The Fed has anticipated further interest rate hikes with the aim of slowing economic activity enough to fight inflation, but without plunging the US into recession.

Powell was expected to be confirmed without a hitch, having received nearly unanimous support from Democrats and Republicans on the Senate banking committee in March.

The only person who voted against him then was Senator Elizabeth Warren, who considered Powell “a dangerous man” to lead the Fed for having reduced financial regulations, such as the annual controls that were used to examine whether the big US banks They could withstand a severe recession.

Warren returned this Thursday to vote against Powell, whose candidacy was rejected by other Democrats, such as Senator Bob Menéndez, of Cuban origin.

Menéndez considered it “shameful” that a Latino has never been appointed to lead the Fed in its 108-year history, according to a statement from the senator.

Inflation in the United States remains at historical levels not seen for forty years, although it moderated slightly in April, standing at 8.3%, two tenths less than in March, according to data from the Department of Commerce published on Wednesday.

Meanwhile, unemployment in the US stood at 3.6% of the labor force in April, the lowest in two years. EFE