The wait is over: US President Biden announces his decision for the future at the head of the Fed. The democrat chooses continuity.
US President Joe Biden nominates the head of the Federal Reserve (Fed), Jerome Powell, for a second term. The White House announced on Monday in Washington. The Senate still has to approve the change.
The foreseeable continuity at the top of the powerful central bank should be positively received by the markets. The 68-year-old Powell has led the central bank of the world’s largest economy since February 2018. The then President Donald Trump, a Republican, had nominated him for a four-year term. Powell had previously served on the Central Bank Council since 2012.
Under Powell’s leadership, the central bank switched to an extremely loose monetary policy from March 2020 due to the Corona crisis. The Fed cut its key interest rate to close to zero and launched other programs to support the economy and the labor market. In the meantime, the Fed is cautiously scaling back its support in light of the economic recovery.
Some more left-wing party members, including the influential Senator Elizabeth Warren, had recently pressured the Democrats Biden not to grant Powell a second term. Warren had criticized the relaxation of banking regulation promoted by Powell, a lawyer and former investment banker, and most recently described him as a “dangerous man.” Many leftists therefore campaigned for Lael Brainard, who holds a doctorate in economics and has been a member of the seven-member Central Bank Council since 2014.
Brainard is now to take over the post of Vice-Fed chief, as the White House further announced.
Source From: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
