US President Joe Biden’s decision to reappoint FRB Chairman Powell to prioritize stability-Bloomberg

In the process of US President Joe Biden’s selection of the next Federal Reserve Chairman, Wall Street and Washington have been sought after by Powell, who will expire in February next year.

However, Fed Director Brainard, who met with President Biden earlier this month at the White House, made a strong impression on him. According to people familiar with the matter, the interview time was longer than planned, and the content was wide-ranging, including the fragile state of the US economy, inflation, China, and climate change.

President Biden, Powell and Brainard (November 22)

  

President Biden praised Mr Brainard, and the meeting discussed the Fed’s presidency. There was also a move to push Brainard from some Democratic progressives. But amid growing concerns about the economic situation among Americans, the final conclusion of the president was the reappointment of Mr Powell.

Powell, who met with the president individually on the same day as Brainard, answered detailed questions about financial regulation and climate risk, giving him a better chance of being re-nominated. President Biden, who has been criticized by the opposition for rising prices for homes, food, energy and cars, and has been unable to reverse the decline in poll approval, chose a politically safe option. No matter how much the president got along with Mr Brainard, stability and the political independence of the Federal Reserve were prioritized.

President Biden announces Fed Chairman Powell’s continued throw

Source: Bloomberg

This article on the presidential decision is based on interviews with more than six people familiar with the selection process, which is essentially prior to Mr. Biden’s victory in the presidential election last November. It had begun. One of the government officials familiar with the matter said he knew that if he was elected, the Fed chair would be one of the most important appointments.

However, the decision was delayed due to the time-consuming consideration of President Biden and the lengthening of parliamentary negotiations on the president’s economic priorities. Officials have revealed the president’s private review process, subject to anonymity.

Many White House presidential aides saw little benefit in replacing the FRB chair as U.S. financial authorities responded so quickly and aggressively to the pandemic of the new coronavirus. ..

President Biden said in an announcement yesterday that he wanted to eliminate “bitter partisanship” from the decision. Powell has widespread support from Senate Republicans, so even if some Democratic liberals are rebelled, his nomination will not be hindered.

Until the president’s decision, the Fed’s personnel debate was limited to the closest group of White House Chief of Staff and Treasury Secretary Janet Yellen, Chairman of the National Economic Council (NEC), and President Ricketti’s adviser. Only Mr. Dies was present at the meeting between the President and Mr. Powell and Mr. Brainard.

President Biden and the administration’s economic team have spent hours discussing the Fed’s candidate for chair. Apart from the Oval Office, extensive discussions took place between NEC, the Council of Economic Advisers (CEA), and Treasury officials, many of whom combined with Powell and Brainard to create the Federal Reserve. I supported to lead.

Yellen had informed the White House presidential aides in the summer of his support for Powell’s reappointment.

On the 19th, President Biden called Mr. Powell and Mr. Brainard after attending the turkey “pardon ceremony” before Thanksgiving, informing them of the decision to continue the chair and nominate the vice-chair, respectively. Brainard will replace Vice-Chairman Clarida, whose term expires in January next year.

.