Joe Biden has nominated Jay Powell to continue serving for a second term as chair of the Federal Reserve, choosing continuity as the US economy struggles with high inflation.DXY up +0.25%, EUR USD down 0.19%
- Lael Brainard, who is seen as Powell’s biggest competitor for the top position, was nominated for the role of vice-chair.
- Biden stated that Powell and Brainard played an instrumental role in steering the economy through the worst downturn in modern American history and placing it on the path to recovery.
- Biden further stated that he was confident Chair Powell and Dr. Brainard’s focus on maintaining inflow low, prices stable, and pushing full employment to strengthen the economy.
- Meanwhile, President Biden did not appoint any person for the various vacant spots on the Fed board, including vice-chair for supervision, who is responsible for banking regulation.
- The decision comes after months of speculation about the Biden administration’s desire to reshape the Fed at the moment when the Fed is actively debating how to revamp monetary policy.