Clash among progressives is boosting the Fed chief’s path to keeping his job

Federal Reserve Chair Jerome Powell’s record as head of the U.S. central bank is sparking a rift among progressives — and that may clear a path for him to keep his job.

The Republican Fed chief has inspired blistering disapproval from lawmakers like Rep. Alexandria Ocasio-Cortez (D-N.Y.) and others who have accused him of ignoring climate change and going too easy on banks. Other critics say he has stoked income inequality by pumping trillions of dollars into Wall Street and done little to bring diversity to the Fed’s ranks.

Some...