Biden chose Powell: Will be nominated for second term at Fed

Jerome Powell will have a second term at the head of the Fed

US President Joe Biden announced Monday that he will nominate Jerome Powell to continue a second term at the head of the Federal Reserve for four more years, and as Vice President Lael Brainard to replace Richard Clarida . 

“We can’t just go back to where we were before the pandemic, we have to better rebuild our economy and I’m sure President Powell and dr. Brainard will focus on keeping inflation low and prices stable, and full employment will make our economy stronger than ever, “the US president said in a statement. 

According to the president, his decision to nominate Powell is due to the handling of the monetary policy implemented by the Fed to face the pandemic. 

The agency implemented loan programs, lowered interest rates to near zero, and began a monthly bond purchase program that would increase holdings of Treasury bonds and mortgage-backed securities by $ 120 billion a month.

“President Powell has provided consistent leadership during an unprecedented challenging period, including the largest economic recession in modern history and attacks on the independence of the Federal Reserve,” Biden added in the document. 

In recent weeks there was speculation about Biden’s decision as to who he would choose as Fed chairman, between Powell, a Republican, and Brainard, a Democrat, appointed by former President Barack Obama in 2014. 

Now, Powell must be confirmed in the Senate. In his first term he was approved by 84 to 13 votes and it is likely that he will be confirmed without problems. Brainard may have a more difficult situation for approval.

The Fed's announcement of two hikes in 2023 brings to the fore the dilemma of how to deal with the Read more

The US central bank underlines "progress in vaccination and strong political support" to sustain the recovery. The US Federal Reserve (Fed) Read more

Fed officials, determined to restore the job market and push inflation to 2% on a persistent basis

 Fed officials, determined to restore the job market and push inflation to 2% on a persistent basis In the face of a suffering Read more

FED will keep the price of money at 0% for the next 3 years

FED will keep the price of money at 0% for the next 3 years Federal Reserve officials put the final Read more

The US enters the third wave of the pandemic with 140,000 daily cases

The US enters the third wave of the pandemic with 140,000 daily cases. Investors are weighing the possibilities of the Read more

Fed guarantees its support for the recovery but asks Congress for more stimulus

Fed guarantees its support for the recovery but asks Congress for more stimulus. Two days after the Americans went to Read more

Federal Reserve will continue to support the US economy without defining mechanisms

Federal Reserve will continue to support the US economy without defining mechanisms. The Federal Reserve remains committed to using all Read more

The Fed changes its way of acting after a historic speech

The Fed changes its way of acting after a historic speech. "A true turning point" or "historic speech" are some Read more

The Fed's rescue plan aimed at guaranteeing the liquidity of the municipalities will also continue until December

The Fed's rescue plan aimed at guaranteeing the liquidity of the municipalities will also continue until December. Investors remain wary Read more

Slow and risky recovery

Slow and risky recovery. "The recovery in the economy is extraordinarily uncertain and will largely depend on our success in Read more

Leave a Reply