Jerome Powell, who guided the Central Bank and the country’s economy through the and sudden Covid-19 pandemic recession by implementing untypical monetary stimulus, is being chosen as chairman of the U.S. Federal Reserve for a second term.
President J Biden made the announcement on Monday morning. Biden said on Monday afternoon that he chose Powell because the current economic situation presents an enormous potential and an enormous uncertainty and needs stability and independence.
Brainard was chosen as vice-chair of the board of governors. As vice-chair for the monetary policy, Brainard would succeed Richard Clarida.
“As I’ve said before, we can’t just return to where we were before the pandemic, we need to build our economy back better, and I’m confident that Chair Powell and Dr. Brainard’s focus on keeping inflation low, prices stable, and delivering full employment will make our economy stronger than ever before,” Biden said in an earlier statement.
The nominations of both will next move to the Senate for confirmation.
In making the decision, Biden glorified Powell for decisive action in the unprecedented days of the pandemic.
White House statement said, “Chair Powell has provided steady leadership during an unprecedently challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve. During that time, Lael Brainard – one of our country’s leading macroeconomists – has played a key leadership role at the Federal Reserve, working with Powell to help power our country’s robust economic recovery.”
The announcement by the president coincided with an increase in the stock market and government bond yields were also higher across the board.
