It is expected to be announced as early as next week. Compared with his two predecessors, Biden waited longer to make a choice, which left a relatively narrow window for the Senate to confirm his choice before Powell’s term expires in February next year.
Biden said at a press conference on November 2 that he plans to announce his choice “soon” and said that there will be “ample time” for his choice to go through the confirmation process.
When asked about this position, Biden said: “I have considered this a lot. I have been meeting with my economic adviser to discuss what is the best option. We have many good choices.” “But I don’t plan to do it right now. Speculate.”
This decision marks a pivotal moment in the White House’s management of an economy that began with a once-in-a-century pandemic. Although employment and wage growth are strong, the combination of pandemic-driven supply chain bottlenecks and surge in demand for goods has caused prices to rise this week to three-year highs.
The headwinds following the pandemic have made Biden’s choice of America’s most important economic decision maker extremely complicated. Powell is the chairman appointed by the Republican Party and was elected by President Donald Trump four years ago.
The main members of the Democratic Party control Congress narrowly, hoping that the president will replace Powell with the current Fed governor Lyle Brainard, and believe that she will promote more active supervision of financial institutions.
Senator Elizabeth Warren, a leading progressive with ties to the government’s main economic adviser, lashed out at Powell in September when she called him a “dangerous figure leading the Federal Reserve” because she believed Powell was monitoring Position on the issue.
The Federal Reserve announced in October that it would completely ban senior officials from holding individual stocks and bonds, as well as other trading restrictions. According to people familiar with the matter, in the current process, the enlightenment of stock trading has not been regarded as Powell’s problem.
Powell also faced criticism from some lawmakers from both parties for continuing to support expansionary monetary policy, even as inflation soared during the difficult recovery after the coronavirus shutdown.
But so far, Warren’s strong opposition and other concerns about Powell’s approach have not aroused any widespread public opposition on Capitol Hill. People familiar with the matter said that the White House has been involving key Democratic senators throughout the process, even though they did not lean towards Biden.
At a time when the uncertainty of inflation and economic growth has increased, Powell’s ability to deal with abnormal economic turmoil since the beginning of last year has generally been strongly evaluated. He promised to use monetary policy leverage to help repair the labor market, which is consistent with the views of White House economists.
University of Michigan economist Bessie Stevenson, who advised former President Barack Obama, said: “Powell is leading this ship through very rugged waters. He seems very determined to let us reach another place where we can maximize employment. One side.” “I’m really worried about what will happen if he is asked to hand over the steering wheel now.”
“He deserves it,” added Tony Frato, a former Treasury official who worked in the administration of President George W. Bush. “He has always been an anchor…face a truly unprecedented challenge.”
In addition, the 84 votes Powell received in January 2018 confirmed as chairman, coupled with the public support of several Republican senators, shows that he can easily win a second term, which may not be true Brainard . Obama initially appointed Powell as a governor of the Federal Reserve in 2011.
The vacancy of the Fed’s vice chairman of supervision gives Biden an opportunity to respond to the Democratic Party’s concerns about Powell’s financial supervision methods without having to replace him as chairman. Some economists close to the government speculated that he could choose Brainard for the position.
Biden knows Brainard, who served in the Obama Treasury Department when he was vice president. He interviewed her and Powell at the White House last week.
If he nominates Powell for re-election, Biden will become the third consecutive Democratic president to have a Republican chair the Federal Reserve. Bill Clinton re-nominated Alan Greenspan for the position in 1996, just as Obama nominated Ben Bernanke in 2009.
Biden’s predecessor, Donald Trump, broke the unofficial precedent and chose not to re-nominate Janet Yellen, Obama’s second term candidate.
Powell replaced Yellen and continued to be Trump’s regular punching bag as the former president tried to influence the Fed’s interest rate policy.
According to people familiar with the matter, Yellen is now Biden’s Secretary of the Treasury and privately communicated the value of central bank continuity to White House advisers this fall, which is seen internally as tacit support for this work.
In public, Yellen only admitted that she had discussed the Fed’s choice with Biden, but did not give clear support. But she did appreciate Powell’s time in that role.
“I think Chairman Powell did a good job,” Yellen said in an interview with CNBC on November 1.
You have to be inform about what is happening in USA go to united states news to see more.