Washington: The US Senate on Thursday confirmed Jerome Powell to a second term as head of the Federal Reserve, as the central bank ramps up its fight to crush soaring inflation.
The vote came amid
inflation that has hit a 40-year high, fueled by the conflict in Ukraine and sanctions imposed on Russia, as well as Covid-19 restrictions in China that have raised concerns the global supply snarls may worsen.
The Fed chair has said his primary focus is on getting inflation under control, but acknowledged the effort could be painful.
US President Joe Biden, whose popularity has taken a hit from the soaring inflation and record gasoline prices, has repeatedly said that tackling the issue is primarily a job for the Fed.
“I am pleased to see the Senate take a step forward on my agenda to get inflation under control by confirming my nominees to the Fed,” he said in a statement after the vote.
Powell, who first joined the Fed board in 2012, led the central bank as it slashed the benchmark interest rate to zero at the start of the pandemic in March 2020 and pumped money into the financial system to prevent a severe downturn in the world’s largest economy.
Now, he is overseeing efforts to cool price pressures affecting American families.
The Fed last week announced its largest rate hike since 2000 and signaled similar increases were likely in the coming months.
The challenge for Powell and the Fed is to turn down the heat on inflation without tipping the United States into recession.