Jerome Powell, the chairman of the Federal Reserve, recently revealed to investor David Rubenstein that he earns a salary of around $190,000 per year. This figure is a far cry from the median pay for CEOs of the top 100 US companies, which according to Equilar data cited by Fortune stands at about $20 million.
Powell, who is the most influential figure presiding over the US economy and one of the key figures in global financial markets, was asked whether he thought his salary was fair. He replied that if his family expenses exceeded his salary, they would have to sell an asset to cover the difference.
The current pandemic era saw the Fed embark on a massive campaign to ease monetary policy in order to keep the economy afloat. However, since the start of 2022, those efforts have been wound down in favor of aggressive interest rate increases meant to tame inflation that's soared to four-decade highs. Powell has faced criticism over his policy guidance during the past year, with commentators from Mohamed El-Erian to Wharton professor Jeremy Siegel warning that the Fed could botch its mission to tame high inflation and throw the economy into a recession.
Data from the Consumer Price Index for January revealed that annualized inflation came in at 6.4%, lower than the preceding month but higher than the forecast of 6.2%. DataTrek noted that the New York Fed's Recession Probabilities model, which is based on the spread between the three-month and 10-year Treasury yields, shows the odds of a recession in the next 12 months is at 57%, the highest it's been since the early 1980s.
0. “Fed chief Jerome Powell says he earns $190,000 a year to be one of the world's key financial players – and he” Business Insider India, 14 Feb. 2023, https://www.businessinsider.in/stock-market/news/fed-chief-jerome-powell-says-he-earns-190000-a-year-to-be-one-of-the-worlds-key-financial-players-and-he-thinks-thats-a-fair-number/articleshow/97925114.cms
1. “Fed Chair Jerome Powell says he earns $190,000 salary, and that's fair” Markets Insider, 14 Feb. 2023, https://markets.businessinsider.com/news/stocks/jerome-powell-salary-fed-chairman-fair-central-bank-chief-economy-2023-2