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Rep. Alexandria Ocasio-Cortez (D-NY) and other representatives of the most radical Democratic wing on Tuesday urged President Joe Biden to replace Jerome Powell as head of the Federal Reserve (FED).
Powell, who took office in 2018 after being nominated by former President Donald Trump (2017-2021), completes his four-year term at the helm of the central bank early next year.
“We urge President Biden to reimagine a Federal Reserve focused on eliminating climate change risk and advancing racial justice,” Ocasio-Cortez said in a statement in which she attempts to mix monetary policies with racial and climate issues.
The statement is signed, along with the young New York legislator, by other representatives of the most left-wing of the Democrats in Congress such as Rashida Tlaib, Ayanna Pressley and the Latino Chuy Garcia.
Although the lawmakers acknowledged some “positive changes” by the FED under Powell’s leadership in its monetary approach, they criticized the little progress made in “mitigating the financial risk linked to climate change.”
Biden has not yet indicated whether he intends to reappoint Powell as head of the central bank, but several media have indicated that Treasury Secretary Janet Yellen has expressed her support for him to continue four more years at the helm of the FED.
The Federal Reserve has maintained an extraordinary monetary stimulus program since March 2020, with interest rates close to 0% and huge monthly bond purchases, to deal with the economic impact of the COVID-19 pandemic.
