trending Market Intelligence /marketintelligence/en/news-insights/trending/8gH-thrR8PO-HvjssW9aAg2 content esgSubNav
In This List

Powell's nomination clears Senate committee, with Warren voting against

Blog

Using ESG Analysis to Support a Sustainable Future

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook


Powell's nomination clears Senate committee, with Warren voting against

The Senate Banking Committee on Dec. 5 overwhelmingly approved the nomination of Jerome Powell to become the next Federal Reserve chair, with U.S. Sen. Elizabeth Warren casting the lone vote against him and 22 other senators supporting him.

Warren, D-Mass., pointed to "troubling statements" Powell has made in favor of removing some banking regulations, noting an exchange between the two at his confirmation hearing. In response to a question from Warren, Powell said the current rules on banks are "tough enough" and none need to be strengthened. He had also told senators that there were no longer any banks that were too big to fail.

"Too big to fail is still a problem in this country, the biggest problem, in fact, that the Fed and other regulators need to confront," Warren said.

If the full Senate confirms him, Powell would replace Fed Chair Janet Yellen, who has said she will leave the Fed's Board of Governors once Powell takes over.

Sen. Michael Crapo, an Idaho Republican who chairs the committee, said Powell's "judgement and expertise will be a continued asset to the board."

Sen. John Kennedy, R-La., also backed his nomination but said that does not mean he will be an "automatic yes" when the full Senate gets to vote. Kennedy, who had a pointed exchange with Powell during his confirmation over community bank regulation, said "some serious issues were raised" during the hearing.

Meanwhile, Sen. Sherrod Brown, D-Ohio, said he was disappointed President Donald Trump didn't reappoint Yellen but said Powell's nomination gives the U.S. the "best chance of continued economic growth" since he is not expected to stray significantly from Yellen's approach to monetary policy. But he also emphasized that Powell needs to keep his promise to remain "free from political influence," particularly from a Trump administration that he said wants to weaken bank oversight.

"Americans need a strong financial watchdog that has not forgotten the lessons from the last crisis," Brown said.