On Monday, President Biden nominated Jerome Powell (a Republican) to the Federal Reserve Chair for a fourth-year term. Powell is a solid hand that helped pull the U.S. out of the COVID-19 depression and who has strong bipartisan support.
Biden also nominated Fed Governor Lael Brainard as vice chair of the Fed’s board of governors.
The decision caps a weekslong race between Powell and Brainard, a Democrat, for the nation’s top economic post. Biden, reportedly under the pressure of progressive Democrats, took Brainard seriously over recent days after Powell appeared to be a lock for the top economic post.
“While there’s still more to be done, we’ve made remarkable progress over the last 10 months in getting Americans back to work and getting our economy moving again,” Biden said in a statement. “That success is a testament to the economic agenda I’ve pursued and to the decisive action that the Federal Reserve has taken under Chair Powell and Dr. Brainard to help steer us through the worst downturn in modern American history and put us on the path to recovery.”
This nomination is timely for the economy’s reopening. Inflation has seen its highest jump in 30 years last month, while growth is slowing after its tumultuous pace in the past year due to COVID spikes triggered by the delta variant.
The next Fed chief faces the delicate task of raising the central bank’s key short-term interest rate from near zero to fight inflation without derailing a…