Challenges Faced by Jerome Powell: Obstacles and Turning Points
Life is full of challenges, and Jerome Powell faced many. Discover key struggles and how they were overcome.
Jerome Hayden "Jay" Powell is an American investment banker and lawyer. Since 2018, he has served as the 16th chair of the Federal Reserve. Powell is expected to remain in his position at least through 2026.
June 1982: Inflation rates rise to levels not seen since June 1982
Prices for American consumers are rising at their fastest annual rate since June 1982.
2011: Debt Ceiling Crisis Work
In 2011, as a visiting scholar, Powell worked on getting Congress to raise the United States debt ceiling.
September 2012: Skeptic of Quantitative Easing
In September 2012, Powell was skeptical of round 3 of quantitative easing (QE3), although he eventually voted for it.
2018: Raised Interest Rates
In 2018, Powell continued to raise US interest rates, which drew public criticism from President Trump.
2019: Abandoned Quantitative Tightening
In early 2019, Powell abandoned quantitative tightening, leading to a recovery in asset prices, though criticism from Trump continued.
August 2020: Bloomberg calls Powell's policy "exuberantly asymmetric"
In August 2020, Bloomberg News described Jerome Powell's policy as "exuberantly asymmetric", suggesting the "Powell Put" had become more extreme than the "Greenspan Put".
August 2020: Investors warn of a speculative bubble
In August 2020, investors Leon Cooperman and Seth Klarman warned of a dangerous "speculative bubble", with market psychology "unhinged from market fundamentals".
September 2020: Powell defends Fed actions
In a September 2020 testimony, Jerome Powell stated that the Fed's actions were "in no way an attempt to relieve pain on Wall Street".
November 19, 2020: Agreed to Return Unused Crisis Funds
On November 19, 2020, after disagreeing with Treasury Secretary Steve Mnuchin, Powell agreed to return unused crisis funds to the United States Treasury and urged Congress to approve more stimulus.
December 2020: Powell's monetary policy loosest in GSFCI history
By December 2020, Jerome Powell's monetary policy, measured by the Goldman Sachs US Financial Conditions Index (GSFCI), was the loosest in the history of the GSFCI (beginning in 1987), creating simultaneous asset bubbles.
December 2020: Powell defends high asset prices
In December 2020, Jerome Powell defended high asset prices by referencing the Fed model, leading to criticism and concerns about creating a financial bubble.
2020: Actions to Counter COVID-19 Impact
In 2020, Powell launched an unprecedented series of actions to counter the financial market impact of the COVID-19 pandemic.
April 2021: Powell downplays housing bubble concerns
In April 2021, Jerome Powell dismissed concerns about a potential housing bubble, stating, "we don't see bad loans and unsustainable prices and that kind of thing."
August 2021: Progressive Democrats call for Powell's replacement
In August 2021, progressive Democrats, including Alexandria Ocasio-Cortez, urged President Joe Biden to replace Jerome Powell.
September 2021: Senator Warren calls Powell "dangerous man to head up the Fed"
In September 2021, Senator Elizabeth Warren criticized Jerome Powell's financial regulation record and labeled him a "dangerous man to head up the Fed."
December 2021: CPI hits 7%
The most recent December 2021 CPI reading hit 7%.
