Senator Sherrod Brown, Democrat of Ohio and head of the Senate Banking Committee, pointed out that there had never been a black woman on the Federal Reserve Board of Governors in Washington, while also referring to Reports earlier this year showed a shortage of black economists at the central bank.
He asked if Mr Powell believed the central bank should have a black woman on its board of governors.
“I totally agree that we want everyone’s voice to be heard around the table, and that would of course include black women,” Mr. Powell said. “Of course we have no role in the selection process, but we would certainly be delighted.”
Lisa Cook, an economist at Michigan State University, and William Spriggs, chief economist of the AFL-CIO union, are often presented as potential candidates for governor or leadership positions. Both are black. Lael Brainard, a white woman who is currently Fed governor, is often referred to as a possible replacement for Mr. Powell if he is not reappointed, and Sarah Bloom Raskin, a white woman who is a former senior Fed official and the Treasury, is often proposed to replace Mr. Quarles.
Mr. Powell, as he noted, has no formal role in the selection of his future colleagues on the Fed Board.
He and his colleagues on the Fed’s board will, however, have the opportunity to comment on who will take over two newly opened positions around the Fed decision-making table. The central bank has a total of 19 officials, seven governors and 12 regional bank presidents.
Robert S. Kaplan, chairman of the Dallas Fed, and Eric S. Rosengren, chairman of the Boston Fed, both announced their impending retirement on Monday, amid widespread criticism that they were trading in securities. in 2020 – in a year in which the Fed deployed a broad market rescue in response to the pandemic.
Mr Powell addressed the scandal on Tuesday, promising lawmakers that the Fed will change its ethics rules and saying the Fed is investigating business activity to make sure it complies with those rules and the law.