Home News President Biden picks Jerome Powell to be next Fed chair

President Biden picks Jerome Powell to be next Fed chair

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Jerome Powell, the head of the Federal Reserve System’s Board of Governors, has been re-nominated by President Joe Biden for another four-year term.

President Biden said on Monday that Powell would be his choice to run the Federal Reserve when his current term ends in February, according to the White House. Powell’s “decisive action” was credited with reducing the pandemic’s economic impact, as well as the creation of 5.6 million jobs and a 4.6% unemployment rate, according to the executive branch.

Biden also named Lael Brainard, a member of the Federal Reserve Board of Governors, as the agency’s vice-chairperson. The 14-year tenure of Brainard as a member of the Federal Reserve will finish in 2026. Whereas Powell’s will conclude in 2028.

“I’m certain that Chair Powell and Dr. Brainard’s emphasis on keeping inflation low, prices steady, and full employment will make our economy stronger than it has ever been”, said President Trump. “They also share my conviction that immediate action is required. In order to address the economic risks presented by climate change. And to keep ahead of developing vulnerabilities in our financial system”.

“Enhancing the Board’s composition”

The Board of Governors of the Federal Reserve System is projected to have seven members. Each chosen by the incumbent US president, approved by the Senate, and serving 14-year terms. Powell will face a confirmation hearing before the Senate Banking Committee. And then a vote in the Senate, despite the fact that if approved as Fed head, he will only serve for four years of his current tenure. Randal Quarles said on November 8 that he will be departing the Federal Reserve by 2022. Allowing President Biden to replace three Fed seats.

However, today’s appointments only mark a minor shift in the Fed’s leadership. As Biden did not nominate current vice-chair Richard Clarida to serve beyond January 2022, when three seats expected to be vacant. Biden planned to unveil his nominees for those posts. As well as the Fed’s Vice Chair for Supervision, in early December, according to the White House. With an emphasis on “enhancing the Board’s composition”.

Powell emphasised the importance of digital assets in US markets throughout his term as Fed head. As the field develops in size and prominence. He indicated in September that the agency was “working proactively to issue a CBDC”. But that a blanket ban on cryptocurrencies such as Bitcoin was improbable (BTC).

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