Fed’s Powell Rejects Senator’s Criticism of BlackRock Aid Role

Federal Reserve Chairman Jerome Powell rejected a U.S. senator’s criticism of BlackRock Inc.’s involvement in coronavirus-relief efforts because of its interests in China, saying the central bank’s sole focus was on supporting American jobs.

“We hired BlackRock for their expertise in these markets,” Powell said to Senator Martha McSally, a Republican from Arizona. “It was done very quickly due to the urgency and need for their expertise. We’re not trying to reach out for other public policy objectives.” BlackRock has been hired by the Fed to manage potentially billions of dollars of assets purchased under emergency lending facilities launched to keep credit flowing during the pandemic.