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United States President Joseph Biden has put forth Jerome Powell to remain as the chair of the Federal Reserve, subject to Senate approval, and nominated current Governor Lael Brainard to the Vice Chair position, the White House said Monday.
Powell was widely expected to be reappointed, but it was not a guarantee. Some, particularly democratic Senator Elizabeth Warren, has been critical of Powell’s approach to bank regulation, while others are concerned that Powell is likely to give in to calls for a faster pace of monetary policy tightening due to rising inflation compared with his possible replacement, Fed Governor Lael Brainard.
However, it appears that Biden opted to stick with Powell to maintain the continuity that is still needed as the economy moves out of the pandemic, particularly with the resignations of two regional Fed bank presidents and Vice Chair for Supervision Randal Quarles.
Biden will still have several opportunities to fill seats on the Fed board and appease those looking for a different approach to the Fed’s role in the economy and banking.
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