16 Nov 2021
President Biden Weighs Fed Chair nominations of Brainard and Powell
The Index Today
President Joe Biden will soon announce new appointed Federal Reserve Chairman for the four-year term starting in February. He held separate interviews with each nominee, Lael Brainard and current fed chair Jerome Powell and advisers.
Many democratic lawmakers and economists have shown favor for Jerome Powell as the next Fed chair. However, criticism has come forward from many reluctant democrats who wish to see someone more committed to implementing strict financial measures to address the current situation.
Jerome Powell was nominated back in 2011 by President Obama to become a member of the Fed board and was them led to chair by Trump. He was previously working as private equity executive and is a republican. On the other hand, Ms. Brainard was employed at the Obama Treasury Department as an economist and later joined the Fed in 2014.
Apart from picking the Fed Chair, the president is expected to announce another nominee for the board of governors which comprises of seven members. If In case Jerome Powell is not selected to serve the next term, it is likely he will exit the Fed and board. This means, a total of four seats will be needed to be filled in the coming three months. Fed officials are expected to make key fiscal decisions on hiking interest rates and managing inflation which affect economic recovery.
Both candidates have similar views on the current level of inflation and consider it as a direct result of the pandemic. Ms. Brainard showed exceptional support towards to new policy framework which was introduced by Jerome Powell last year.