US President Joe Biden announced today (Monday) that he is appointing Jerome Powell for a second four-year term as chairman of the Federal Reserve, thus endorsing Powell’s economic management while a deadly epidemic involving a particularly low interest rate policy The Fed has helped bolster confidence and revive the job market, the Associated Press reported.
Biden also said he would appoint Liel Brainard, the only Democrat on the Fed’s board of governors and Powell’s preferred alternative among many progressives, as vice chairman.
A separate position of deputy supervisor, a regulatory role at the bank, remains vacant, along with two more slots on the Fed’s board. These positions will be filled in early December, the president said.
“If we want to continue to build on this year’s economic success, we need stability and independence in the Federal Reserve – and I have full confidence after their trial over the last 20 months that Chairman Powell and Dr. Brainard will provide. The strong leadership our country needs,” Biden said. In a statement.
Biden’s decision, made after extensive deliberation, stems from considerations of continuity and bipartisanship at a time when rising inflation is weighing heavily on households and raising risks to the economic recovery. With the support of Powell, a Republican first promoted to the presidency by President Donald Trump, he has rejected progressive complaints that the Fed has weakened banking regulation and reacted belatedly to taking into account climate change in banking supervision.
If the Senate approves the appointment, Powell will remain one of the most powerful economic officials in the world. By raising or lowering its index rate, the Fed seeks to cool or stimulate growth and recruitment, and maintain price stability. Its efforts to steer the U.S. economy, the largest in the world, typically have global implications.
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