Former Vice President and Republican presidential candidate Mike Pence asserted his intent to replace Federal Reserve Chair Jerome Powell if he secures the White House, affirming his stance on the matter during an interview on Tuesday.
“We need fresh leadership at the Fed that’s going to step forward and join us in an effort to really tackle the inflation that is waging war on American families,” Pence declared, highlighting his determination to address the current economic challenges facing the nation.
Pence’s announcement comes amidst the Federal Reserve’s persistent efforts to combat inflation through an aggressive rate-hiking campaign, which has thus far yielded less than anticipated results. The central bank’s preferred inflation metric, the Personal Consumption Expenditures Index, reported a 0.2% increase in July, reaching an annual rate of 4.2%—significantly surpassing the Fed’s 2% target.
In an attempt to rectify the Fed’s apparent shortcomings, Pence also reiterated his call for the institution to shed its dual mandate of maintaining price stability and ensuring maximum employment. He argued that the Fed should focus solely on stabilizing interest rates and curbing inflation, contending that the responsibility for achieving full employment lies with the executive and legislative branches of the government.
“Full employment ought to be the job of the president, of the members of Congress, of governors, and elected officials,” Pence emphasized, underscoring his longstanding advocacy for a narrower Fed mandate, an idea he initially proposed during his tenure in Congress back in 2011.
Pence’s stance aligns with a growing chorus of dissenting voices concerning Powell’s leadership. Notable figures within the GOP, including former President Donald Trump, Florida Governor Ron DeSantis, and entrepreneur Vivek Ramaswamy, have all voiced reservations about Powell’s tenure, indicating a collective desire to seek an alternative once his current term concludes.
Inflation is anticipated to be a central focus during the upcoming second Republican primary debate, where leading GOP contenders, excluding former President Trump, are set to engage in a heated exchange of ideas. A recent Washington Post-ABC poll revealed that the economy and rising prices are paramount concerns for voters leading up to the 2024 election, with 74% of Americans expressing dissatisfaction with the current state of the economy.
As the nation gears up for a critical juncture in its economic trajectory, the unequivocal position of Mike Pence on replacing Federal Reserve Chair Jerome Powell underscores the significance of this issue within the broader context of the 2024 presidential race. The outcome of the impending Republican primary debate is poised to exert considerable influence over both the political and economic landscape of the United States.
Source: Yahoo Finance
