Unnamed sources familiar with the matter suggest that the Biden administration might allow Federal Reserve Chairman Jerome Powell to continue running the central bank. The news follows that three US officials are asking Biden to replace Powell with a central bank chief who deals with gender equality and climate change.
Jerome Powell is staying for the second term, sources say
A report by Market Watch employee Greg Robb shows that US President Joe Biden and his administration will likely keep Jerome Powell at the helm of the central bank. Robb says the sources are from “analysts watching Washington for Wall Street” and they are “now pretty sure about his renomination.”
Jerome Powell, chairman of the Federal Reserve, led the central bank through a period when the Fed expanded the supply of money like never before in history. Many complaints have been directed to Jerome Powell and the Federal Reserve’s plans.
Speaking to Market Watch, Stephen Myrow, Managing Partner of Beacon Policy Advisors said, “My baseline is now Powell. That is the consensus. ”Meanwhile, Robb also reported that the US executive director of the Eurasia Group, Joe Lieber, agrees. “I think there is a high likelihood that they will rename Powell,” said Lieber on Tuesday. However, the Biden administration may receive complaints about Powell from members of the Democratic Party.
Three special US representatives (Alexandria Ocasio-Cortez (AOC), Rashida Tlaib and Ayanna Pressley) want him to address other issues besides Covid-19. AOC slammed Powell, saying, “Under his leadership, the Federal Reserve has taken very little action to reduce the risk of climate change to our financial system.” The three US officials want someone to expand the monetary system to include issues such as equality and tackle so-called climate change.
Joe Lieber: “Picking Powell is a slam dunk in terms of market reaction and a slam dunk in terms of the Senate”
Myrow emphasized to Robb that “[Biden now] has too much on his plate, ”and Leiber declared that it was“ good policy ”to re-elect Powell. “It’s a slam-dunk in terms of market reaction and a slam-dunk in terms of the Senate – Powell will get 80 votes,” said Leiber in his interview.
Meanwhile, last month’s Consumer Expectation (SCE) report shows that many American households are concerned about rising inflation. Central bank metrics from the report released this week show that SCE respondents envision one-year inflation rising to 5.2% and expecting around 4% for three years.
It is likely that Biden will choose someone to continue the monetary expansion to meet the government’s goals. Despite complaints from some Democrats, Powell has shown that he is ready to expand the US money supply, lower interest rates, and maintain quantitative easing (QE). Every Federal Reserve chairman ever elected to a leadership position in history has always been ready to expand the powers of the Fed.
What do you think of Joe Biden possibly electing Jerome Powell to lead the Fed again for a second term? Let us know what you think on this matter in the comments below.
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Alexandria Ocasio-Cortez (AOC), AOC, Ayanna Pressley, Biden Administration, Biden Fed, Central Bank, Democrats, Economy, Fed, Fed Chairman, Federal Reserve, Greg Robb, Inflation, Jay Powell, Jerome Powell, Joe Biden, Joe Lieber, Market Watch, Monetary Expansion, Rashida Tlaib, SCE, Stephen Myrow, Consumer Expectation Survey, US Economy
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