Senate confirms Fed governor Philip Jefferson as vice-chair
Former economics professor takes Fed's number two post after overwhelmingly bipartisan vote of 88-10
06 September 2023 - 21:33
byRichard Cowan and Ann Saphir
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Governor Philip Jefferson testifies before a Senate banking committee hearing on his nomination to be the Federal Reserve's next vice-chair, in Washington, the US, June 21 2023. Picture: JONATHAN ERNST/REUTERS
The US Senate on Wednesday confirmed Federal Reserve Governor Philip Jefferson as vice-chair of the US central bank in an overwhelmingly bipartisan vote of 88-10.
Jefferson was an economics professor and college dean before becoming a Fed governor last May, and has voted for every interest rate hike since then as the central bank has waged a war against inflation.
His new role means he will work closely with Fed chair Jerome Powell and New York Fed president John Williams to hash out policy alternatives ahead of each rate-setting meeting attended by the full panel of 19 US central bankers.
Fed policymakers are widely expected to leave the benchmark rate in its current range of 5.25%-5.5% at their next meeting on September 19-20, but to also leave the door open for one last rate hike before the end of the year.
Senators are expected later on Wednesday to take up the nominations of Fed governor Lisa Cook to a new 14-year term, and of World Bank economist Adriana Kugler to fill the last open seat on the seven-member Fed Board.
The confirmations would cement the current Fed board as the most diverse in the central bank’s more than 100-year history. Jefferson is only the second black man to be appointed as the institution’s number two position; Cook is the first black woman to be a member of the board, and Kugler will be its first Latina.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Senate confirms Fed governor Philip Jefferson as vice-chair
Former economics professor takes Fed's number two post after overwhelmingly bipartisan vote of 88-10
The US Senate on Wednesday confirmed Federal Reserve Governor Philip Jefferson as vice-chair of the US central bank in an overwhelmingly bipartisan vote of 88-10.
Jefferson was an economics professor and college dean before becoming a Fed governor last May, and has voted for every interest rate hike since then as the central bank has waged a war against inflation.
His new role means he will work closely with Fed chair Jerome Powell and New York Fed president John Williams to hash out policy alternatives ahead of each rate-setting meeting attended by the full panel of 19 US central bankers.
Fed policymakers are widely expected to leave the benchmark rate in its current range of 5.25%-5.5% at their next meeting on September 19-20, but to also leave the door open for one last rate hike before the end of the year.
Senators are expected later on Wednesday to take up the nominations of Fed governor Lisa Cook to a new 14-year term, and of World Bank economist Adriana Kugler to fill the last open seat on the seven-member Fed Board.
The confirmations would cement the current Fed board as the most diverse in the central bank’s more than 100-year history. Jefferson is only the second black man to be appointed as the institution’s number two position; Cook is the first black woman to be a member of the board, and Kugler will be its first Latina.
Reuters
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Related Articles
US unemployment rate rises while wage growth cools as labour market slows
US second-quarter GDP revised down to 2.1%
Economists paint a bleak picture of a slow-growth future
Fed minutes show officials divided over need for more rate hikes
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.