House Democrats Demand POTUS Replace Federal Reserve Chair, Citing Inequality and Climate Change
Five congressional Democrats – three of whom sit on the House Financial Services Committee – are imploring President Joe Biden to replace United States Federal Reserve Chairman Jerome Powell with someone who is committed to tackling worsening income inequality, racial justice, and climate change.
Powell’s term expires next February.
“As news of the possible reappointment of Federal Reserve Chair Jerome Powell circulates, we urge President Biden to re-imagine a Federal Reserve focused on eliminating climate risk and advancing racial and economic justice. We urge the Biden Administration to use this opportunity to appoint a new Federal Reserve Chair,” Representatives Alexandria Ocasio-Cortez (D-NY), Rashida Tlaib (D-MI), Ayanna Pressley (D-MA), Chuy García (D-Ill), and, Mondaire Jones (D-NY) said in a joint statement to Politico on Monday evening.
“Under his leadership, the Federal Reserve has taken very little action to mitigate the risk climate change poses to our financial system,” the progressive lawmakers said of Powell, whose monetary policies have been friendly to the fossil fuel industry. “At a time when the Intergovernmental Panel on Climate Change is warning of the potential catastrophic and irreversible damage inflicted by a changing climate, we need a leader at the helm that will take bold and decisive action to eliminate climate risk.”
García, Jones, Ocasio-Cortez, Pressley, and Tlaib also said that the next Fed chief must be ready, willing, and able to regulate the banking sector to spur a more equitable and sustainable economy.
“Weakening financial regulations that were specifically created to prevent such a disaster from happening again risks the livelihoods of Americans across the country. To move forward with a whole of government approach that eliminates climate risk while making our financial system safer, we need a Chair who is committed to these objectives,” they said.