U.S. Treasury Secretary Janet Yellen has voiced support for Fed Chair Powell amid recent criticisms.

Yellen emphasized there is no reason for Powell to resign early and highlighted the importance of him completing his term next year to reinforce his legacy in reforming the Fed's non-policy operations.

MAIN CONTENT

  • Fed Chair Powell is not being asked to resign early by the U.S. Treasury Secretary.

  • Powell faces criticism from the Trump administration and some Republican lawmakers.

  • The Treasury Secretary calls for a review of the Fed's non-policy operations, including the renovation project.

Why does U.S. Treasury Secretary support Fed Chair Powell?

Janet Yellen confirmed there are no signs that Powell needs to resign, stating in an interview on July 22, 2023, that she believes Powell should complete his term until May 2024 and continue to carry out his responsibilities from a professional standpoint.

She stated: "If Powell wants to complete his term, I hope he can. If he wants to leave early, he can, but there is no pressure to resign immediately." This stance helps ease internal tensions and conveys a message of stability for the U.S. financial system.

How is Powell being criticized by the Trump administration and Congress?

Fed Chair Powell is under significant pressure from the previous administration due to the policy of maintaining stable interest rates, which is believed to raise concerns about inflation as the government increases tariffs. Some Republican members also oppose the plan to renovate the Fed building due to the controversial costs involved.

These objections reflect differences in economic policy views and the Fed's budget management approach, aimed at controlling inflation and maintaining the reliability of the USD in the global market.

"There is a real opportunity for Powell now to streamline the Fed's non-monetary operations, thereby creating his legacy."

Janet Yellen, U.S. Treasury Secretary, interviewed by Fox Business Channel, July 22, 2023

What operations of the Fed does the Treasury Secretary propose to review?

Yellen suggested conducting a comprehensive assessment of the Fed's non-monetary operations to ensure efficiency and transparency, including projects to renovate the Federal Reserve building – one of the controversial items regarding costs and necessity.

This review aims to enhance accountability and ensure resources are used efficiently amid global economic instability and pressure to control public finances.

How do the Fed's policies currently impact the U.S. economy?

The Fed's policy of maintaining stable interest rates, directed by Powell, aims to control inflation without harming economic growth, which is a significant challenge as the U.S. faces the consequences of tariffs and supply chain crises.

Top financial experts believe that balancing growth and price control will determine the effectiveness of sustainable economic recovery.

How do stakeholders view Fed Chair Powell's legacy?

Powell's expected legacy lies in reforming and enhancing the efficiency of non-policy operations at the Fed, which will help strengthen transparency and accountability. The Treasury Secretary's viewpoint has highlighted this as an opportunity to bolster community and financial market trust.

Frequently Asked Questions

Is Powell really under pressure to resign?

No. The Treasury Secretary confirms there are no signs that Powell should resign early, and he is expected to complete his term until May 2024.

What is the main reason Powell is being criticized?

Powell is opposed for maintaining stable interest rates, raising concerns about inflation and the large spending plan for renovating the Fed building.

What is the purpose of reviewing the Fed's non-policy operations?

The purpose is to enhance management efficiency, control costs, and increase transparency in non-monetary policy projects.

How does the Treasury Secretary assess Powell's future?

She expects Powell to seize the opportunity to improve and strengthen non-monetary operations, linked to his legacy.

What impact does the Fed's policy of maintaining stable interest rates have?

It helps control inflation amid economic instability, but also creates many challenges in balancing growth and prices.

Source: https://tintucbitcoin.com/powell-nen-tu-chuc-theo-bessant/

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