Biden backs Powell amid Warren criticism

President Biden on Tuesday said he has confidence in Federal Reserve Chairman Jerome Powell after Powell came under withering criticism from Sen. Elizabeth Warren (D-Mass.).

“Thus far yes, I’m just catching up on some of these assertions,” the president told reporters before leaving Michigan, where Biden gave a speech on his economic agenda.

Principal deputy White House press secretary Karine Jean-Pierre told reporters en route to Michigan that Biden “does have confidence in Powell at this time.”

Powell, who was nominated by former President Trump, began his four-year term as head of the central bank in February 2018. The White House has yet to say whether Biden will reappoint Powell for another term.

Warren in recent weeks has emerged as one of Powell’s staunchest critics, setting up a potential fight between the White House and the leading progressive should Biden seek to reappoint Powell, whose position requires Senate confirmation.

Warren on Tuesday urged Biden to replace Powell amid backlash over financial trades by some of the Federal Reserve’s top officials. Warren claimed in a speech that Powell has ignored a “culture of corruption” at the Fed and failed to take appropriate action after three colleagues disclosed high-value financial trades conducted in the early days of the coronavirus pandemic.

Should Biden tap Powell for another term, he would likely win enough support from Republican and Democratic senators alike to push him over the 50-vote threshold needed for confirmation.

Powell was confirmed by the Senate in 2018 in an 84-13 vote, one of the widest margins for a Trump nominee.