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Biden Considers Richard Cordray as Fed Vice Chair: Report

Richard Cordray, first director of the Consumer Financial Protection Bureau, would head the Fed's bank supervision efforts.
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Richard Cordray is reportedly under consideration by President Joe Biden for the position of Federal Reserve vice chair in charge of banking supervision.

The news came from The Wall Street Journal, which cited knowledgeable sources. Cordray, first director of the Consumer Financial Protection Bureau under President Barack Obama, earned his reputation as a dogged advocate of consumer rights.

Randal Quarles left the vice chair post last month and is expected to retire from the Fed at the end of the year. Quarles’ tilt toward bank deregulation was opposed by fellow Fed member Lael Brainard and many Democrats.

Cordray currently runs the Education Department’s $1.6 trillion student-loan program. He declined to comment to The Journal.

Senate Banking Committee Chairman Sherrod Brown (D., Ohio) said Tuesday that Cordray was one of several candidates under consideration. “I’m talking to the White House about him and a number of other people,” he said, according to The Journal.

Meanwhile, Jeremy Siegel, renowned finance professor at the University of Pennsylvania’s Wharton School, said last week that the Fed has to speed up its fight against inflation. Consumer prices skyrocketed 6.2% in the 12 months through October.

“Absolutely they’re going to have to move faster,” Siegel said of the Fed on CNBC. “They’re very much behind the curve.”

On Tuesday, Fed Chairman Jerome Powell indicated the central bank could accelerate its tapering of bond purchases.

The Fed had previously voiced plans to finish tapering around the middle of next year, and some economists expect rate hikes shortly thereafter.

Powell also said Tuesday that the Fed will stop calling inflation “transitory.”