President Biden Nominates Jerome Powell to Continue Leading Fed, Taps Lael Brainard to Be Vice Chair

President Joseph R. Biden nominated Jerome Powell for a second time period as Chair of the Federal Reserve Board. The President additionally nominated Dr. Lael Brainard to function Vice Chair.

Mr. Powell has been Chair of the Federal Reserve Board since February 2018. His time period as Chair was due to conclude in February 2022 (with a time period on the Board expiring in 2028). Dr. Brainard has been on the Federal Reserve Board since 2014; her time period expires in 2026.

The White Home issued a statement saying the USA wants “steady, independent, and effective leadership” to deal with preserving “inflation low and prices stable” whereas making a labor market that delivers higher jobs and better wages to employees. President Biden mentioned he was assured Chair Powell and Dr. Brainard will “make [the U.S.] economy stronger than ever before” by delivering on these targets.

In an announcement on his nomination, Mr. Powell cited the next priorities: (i) combating inflation, (ii) making certain stability of the monetary system, (iii) addressing local weather dangers and cyberattacks, and (iv) aiding the “modernization of the payments system while protecting consumers.” Dr. Brainard said that she will probably be targeted on (i) lowering inflation, (ii) making certain market development and resiliency, and (iii) supporting a sustainable financial system.

Treasury Secretary Janet Yellen expressed help for the nominees, praising Mr. Powell as having “provided strong leadership at the Federal Reserve to effectively meet and address unexpected economic and financial challenges” and Dr. Brainard as “a respected economist with years of experience [who] has been instrumental in the nation’s recovery.”

President Biden has three vacant seats on the Federal Reserve Board of Governors, together with the Vice Chair for Supervision, a task that Randal Quarles lately announced he will vacate in December 2021. President Biden is predicted to make these appointments in early December.

Commentary

That President Biden is renominating Chair Powell and “promoting” Governor Brainard to a Vice Chair place will not be a lot of a shock to most Fed watchers. If there was any shock, it’s that some had thought Governor Brainard can be named Vice Chair of Supervision as an alternative. That place stays open because the expiration of Vice Chair of Supervision Randal Quarles’s time period in October.

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