Friday, January 28, 2022
HomeNewsbeatJerome Powell gets grilled in his bid for 4 more years

Jerome Powell gets grilled in his bid for 4 more years

Republican Senator Pat Toomey, ranking member of the Senate Banking Committee, expressed concern Tuesday that the Federal Reserve is late to addressing historic inflation.

“We’re more than a year into record economic expansion, with unemployment at near all-time lows, and yet the Fed is still buying government and agency securities,” Toomey said during his opening remarks at Fed Chairman Jerome Powell’s confirmation hearing.

The Pennsylvania Republican argued it was a “mistake” to continue buying bonds, known as quantitative easing, throughout the recovery.

“It has contributed to asset bubbles, distorted markets and a suboptimal allocation of capital, credit and resources, ultimately leading to lower economic growth,” Toomey said.

Toomey added he worries the Fed’s new monetary policy framework, where the central bank tolerates inflation running above targets for a period of time, “has caused it to be behind the curve.”

Beyond inflation, Toomey said he’s concerned about a “troubling politicization of the Fed,” including efforts to address social justice and climate change.

Despite his concerns about the Powell-led Fed’s policies, Toomey said he plans to vote to renominate Powell.

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