Not by whim or chance did our Founding Founders create a tripartite division of governance even though they gave significant power to the Presidency. It is time for our senior legislative body to step up to that responsibility and reject the confirmation of the Chairman of the Federal Reserve to another 4-year term. Why? Because he and his Board of Governors of the Federal Reserve have failed to carry out their dual mandate.
Any thoughtful observation of the recent inflation data shows that inflation is neither transitory—as the current Chairman has previously asserted it would be over the past year—nor is it anywhere close to the self-proclaimed 2% boundary that the Fed had so often stipulated for inflation governance in the past. It is well past the time that the Senate carried out its mandated (Constitutional) task of “advise and consent.”
Failure to reject a Powell second term would be a feckless concession to Executive power and another long step down the path of faulted political governance. Sadly, but likely, we should anticipate another failure by this present Senate.
The only reason that key Senators in the confirmation process could possibly evoke is that a failure to confirm Powell now might produce an even less qualified and “woke” nominee! The evidence of that likelihood are this President’s other nominees’ to other important financial positions. Specifically, Ms. Raskin’s pending nomination and strong doubts concerning the orientation of Ms. Lisa Cook’s nomination to the Fed’s Board of Governors.1
If the Senate confirms the Powell reappointment it will have failed to assert the responsibility given it by our Constitution. If it denies the reappointment, it will have to face the likelihood of a rudderless Board of Governors at least until the November elections when its voice can be important in telling this President that he must act prudently in finding a more adequate leader of the Fed. A rejection now could accelerate a more reasonable appointment process to begin earlier!
- Professor Harald Uhlig has recently posted a strong letter on that nomination in a recent Wall Street Journal opinion column. “The Fed doesn’t need a Censor,”
The Wall Street Journal 2/13/2022. [↩]