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Jerome Powell’s Swift Action on Fed Trading May Boost His Chances for a Second Term

  • Analyst: chair showed ‘ability to do the right thing quickly’
  • Ethics scandal has complicated Powell’s shot at second term
Jerome Powell

Jerome Powell

Photographer: Stefani Reynolds/Bloomberg

Jerome Powell’s swift action to enact new stiff trading rules for senior Federal Reserve officials has the potential to improve his chances for renomination as chair by showing leadership while under fire, according to some Fed watchers.

“Powell showed leadership and the ability to do the right thing quickly,” said Roberto Perli, a partner at Cornerstone Macro LLC and a former Fed economist. “So, if anything, I think this strengthens his candidacy. The Fed needs an independent chair, as it’s always had, not a politicized one.”