The Federal Reserve chair was confirmed to a second four-year term on Thursday, keeping him in one of the most consequential jobs in the United States and world economy at a moment of rapid inflation and deep uncertainty.
Mr. Powell was renominated by President Biden late last year.
Mr. Powell was approved by the Senate. Republicans and Democrats voted against the nomination. The central bank's failure to promote was cited by Senator Robert Menendez, Democrat from New Jersey.
With Mr. Powell's confirmation, Mr. Biden has now appointed four of the Fed's seven governors in Washington, putting his imprimatur on the central bank at a critical moment as it faces what is arguably one of its toughest challenges in decades.
Consumer prices climbed in April from the previous year, which was the fastest pace of inflation in four decades. The Fed is in charge of fostering full employment and maintaining stable prices, so the task of wrestling those quick price increases back under control will fall to Mr. Powell and his colleagues.
Mr. Powell said during a news conference last week that inflation is too high and that they are moving quickly to bring it down.
Mr. Powell's reappointment comes after a first term in which he found himself at odds with the man who elevated him to chair and dealing with an economy that was shut down overnight because of the swine flu.
Mr. Powell will be leading a Fed that is fighting meaningful price increases for the first time in decades, and one that is undergoing a significant leadership shake-up. The Senate confirmed Lael Brainard as Mr. Biden's choice for the Fed's vice chair.
The Senate confirmed two new Fed governors this week. The Senate Banking Committee will hold a confirmation hearing for Michael S. Barr, the new vice chair for supervision, next week.
Ms. Cook and Mr. Jefferson indicated during their confirmation hearings that they were focused on fighting inflation. Stable prices are seen as a critical building block for sustainable economic growth by Fed officials.
Ms. Cook said during her confirmation hearing that high inflation is a grave threat to a long, sustained expansion.
What is inflation? Your dollar will not go as far tomorrow as it did today because of inflation. The change in prices for everyday goods and services is known as the annual change in prices.
What causes inflation? It could be due to increased consumer demand. Some developments, such as limited oil production and supply chain problems, can cause inflation to rise and fall.
Is inflation bad? It depends on the situation. Moderate price gains can lead to higher wages and job growth.
Can inflation affect the stock market? inflation can cause trouble for stocks. During inflation booms, financial assets have been bad, while tangible assets have held their value better.
The Fed has begun raising interest rates in order to cool the economy. Mr. Powell and his colleagues have signaled that they will push up borrowing costs as they attempt to restrain spending and hiring, hoping to bring demand and supply into balance and drive inflation lower.
They acknowledge that it will be a challenge to bring down inflation without causing a recession.
Mr. Powell said last week that he expected this to be very challenging, and that he thought we had a good chance to have a soft or soft-ish landing. It is not going to be easy.
Several of the Fed's 12 regional reserve banks are experiencing personnel changes in addition to the new faces at the Board of Governors in Washington. The Federal Reserve Bank of Boston has a new president, Susan M. Collins, and the Dallas Fed has a new leader, Lorie K. Logan. Both will start this summer.
The heads of the Kansas City and Chicago Feds will retire soon, paving the way for more leadership changes.
The governors of the Fed hold constant votes on monetary policy, while the other regional presidents are not always present.
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