The arguments for firing Jay Powell are tiresome and stupid

The arguments for firing Jay Powell are tiresome and stupid

The has a number of functions and responsibilities, but the most important thing the central bank does is set monetary policy. I feel weird even needing to write that sentence, but given the increasingly tedious arguments I'm seeing for replacing current Chairman Jerome Powell, apparently some people need a reminder. The problem for Powell's opponents is that he has done a truly excellent job leading monetary policymaking during his tenure — both in crafting an effective response to the COVID-driven economic crisis that prevented it from snowballing into a financial crisis, and in implementing a longer-run shift of the Fed's priorities to tolerate more inflation and focus more on promoting full employment and wage growth. A lot of progressive commentators recognize how good this record is, which is why Powell, a Republican, enjoys quite a bit of progressive support for his reappointment, and why President Biden, a Democrat, will for another term. Powell's progressive support comes especially from the parts of the movement with close ties to organized labor, which has good reason to be clear-eyed about pro-worker Fed policies being the key issue in choosing a chair. And even those who oppose Powell mostly admit he has succeeded at