Biden Renominates Powell to Lead the Fed

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U.S. President Joe Biden revealed his intent on Monday to re-nominate Jerome Powell as the Federal Reserve chairperson. Major indices and stocks gained on the news that Powell will get a second term as the head of the central bank.

Photo by Alex Wong/Getty Images)

On Monday, president Joe Biden revealed that he has chosen Jerome Powell to lead the U.S. Federal Reserve for another term. Powell will serve as the chairperson during his second term, while Lael Brainard will serve as the Fed’s vice chair. Powell’s renomination follows the uncertainty surrounding who would take his seat.

At the end of August, three Democrat representatives Alexandria Ocasio-Cortez (AOC), Rashida Tlaib, and Ayanna Pressley had urged Biden to choose a chairperson that would address social change and the so-called climate crisis. However, two weeks later sources with ties to Washington told the press that Biden would renominate Powell.

Last week, headlines further detailed that president Biden was nearing his decision and Lael Brainard was noted as a top pick. Following Biden’s choice to renominate Powell for a second term, U.S. Treasury secretary Janet Yellen said that the decision would allow America’s economy to “continue to benefit from his stewardship.”

“America needs steady, independent, and effective leadership at the Federal Reserve so it can advance its dual goals of keeping inflation low and prices stable, as well as creating a strong labour market that broadly benefits workers with better jobs and higher wages,” the White House explained in a statement concerning Powell’s renomination. The White House added:

President Biden has full confidence in Powell and Brainard’s experience, judgment, and integrity to continue delivering on those mandates and to help build our economy back better for working families.