Joe Biden had a big decision to make that would have a significant impact on the US economy. Whom would he select as chairman of the Federal Reserve? It came down to two people; Jerome Powell, the current Fed chief who guided the economy through the worst recession in decades, or Leal Brained, the only Democrat on the Fed’s Board of Governors.
Biden announced Monday that he’s staying the course with Powell and will nominate him for a seance term. Powell was chosen by former President Donald Trump back in 2017.
Brainard has been selected as vice-chair of the board of governors, the No. 2 position at the Fed.
This decision by Biden puts to end months of speculation, and it continues a trend of giving the Fed Chairman two terms to make sure politics stays out of this position as much as possible.
Here’s part of the statement Biden released about his decision.
“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, Together, they also share my deep belief that urgent action is needed to address the economic risks posed by climate change, and stay ahead of emerging risks in our financial system.”
Biden knows that keeping inflation at check is extremely important if his party wants to hold on to as many seats as possible in the 2022 mid-terms.
Powell was the choice Biden’s economic team, including Treasury Secretary Janet Yellen wanted him to go with.