Will Joe Biden succeed Jerome Powell as Chairman of the Federal Reserve?
President Joe Biden is debating whether to re-appoint Federal Reserve Chairman Jerome Powell or replace him with someone who is more in line with Democratic policy aims in the aftermath of the outbreak.
Biden’s immediate option, as someone who seeks for bipartisanship wherever possible, is to renominate Powell. Since Ronald Reagan, presidents have picked or kept nominees from the other party, but this tradition was broken when former President Donald Trump chose Powell to succeed Janet Yellen as chairman of the Federal Reserve.
Powell, whose term ends in early 2022, is a monetary dove who takes it slow when it comes to raising interest rates. He is largely regarded as a steady hand who has mostly gained the confidence of the markets. In the face of Trump’s demand to change policy, he has actively avoided politics, a move that would have jeopardized the central bank’s independence.
Biden is not known to be acquainted with Powell on a personal level, but there’s a potential he won’t want to upset the boat during the pandemic’s economic recovery. Retaining Powell could be an easy option amid inflation fears, a slowdown from COVID-19’s Delta variation, and sliding popularity ratings for his management of the epidemic.
Democrats, on the other hand, are split on whether Powell should remain at the helm of the Federal Reserve. Powell is not perceived as forceful enough by the progressive wing of the party when it comes to using the Fed’s regulatory powers to restrict excessive risk on Wall Street, battle climate change, or address inequality.
Lael Brainard, a member of the Federal Reserve Board, has been proposed as a possible replacement by several Democrats and left-leaning outside groups. Brainard, who worked in the Treasury Department under Bill Clinton, has been promoted as a candidate who shares Biden’s views on economic policy and is a known face on Wall Street.
According to reports, Brainard isn’t aggressively advocating for the role because she doesn’t want any apparent leadership rivalry with Powell to generate market jitters.
Powell, on the other hand, has Democrats on his side. Sen. John Tester, D-Montana, has lauded him for his role in guiding the recovery. Former Massachusetts congressman Barney Frank and former Connecticut senator Christopher Dodd – the two architects of the – both endorsed Powell for re-appointment. Brief News from Washington Newsday.