Senate confirms Jerome Powell to second term as Fed chairman.

Jerome Powell was confirmed on Thursday morning to a second term as the Chairman of the Federal Reserve. 

The confirmation will keep him in charge of the Fed for another four year term, and in doing so, will keep the former investment banker leading the central bank as it deals with the highest inflation rates in 40 years. 

Powell, who was re-nominated last year by President Biden, was confirmed by the US Senate with a vote of 80-19 to serve a second consecutive term as the head of the central bank.

Powell signaled at a news conference after that announcement that more rate hikes of that size are likely at the next couple of policy meetings.

Powell signaled at a news conference after that announcement that more rate hikes of that size are likely at the next couple of Fed policy meetings.

The Senate’s final vote tally was an endorsement of Powell’s handling of the Covid 19 pandemic crisis, and the 2020 recession that occurred during his first term. He may also have to enact some of the sharpest interest hikes since the early 80’s when the Fed was led by Paul Volcker.

The Fed began lifting its lending rates in March, and raised it again last week by a half a percentage point, the highest rate in over 22 years.

Chairman Powell has emphasized that the Fed’s view is that the economy has remained strong, but has also warned that it would be difficult for a recession to occur without inflation.

Earlier this week, two new members were also confirmed by the Senate, Philip Jefferson, and Lisa Cook., this after Lael Brainard being confirmed herself as Vice Chair back in April.