US president Joe Biden has nominated Jerome Powell as the Federal Reserve chair for the second term in a vote of confidence on his ability to steer the economy in tough times.
- Lael Brainard, who was seen as the close competitor to Powell for the top job, was selected as the vice-chair.
- In his appointment, Biden says Powell and Brainard can steer the economy in the environment of high inflation to full employment and price stability.
- Biden’s pick for Powell happens amid resentment by a section of legislators, with Elizabeth Warren in September calling the Fed chief a “dangerous man.”
- Powell supporters say it was necessary for Washington to stick with the leadership at Fed to evert market uncertainty that could lead to heightened volatility.
- The White House will now appoint other positions at the Fed board beginning early December.
Biden, aged 68, was installed as the Fed chair by previous US president Donald Trump in 2017. He served as a top official at the Treasury during the George HW Bush administration.
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Source: Financial Times