WASHINGTON — President Joe Biden announced on Monday that he will nominate Jerome Powell (Jerome Powell) for his second four-year term as chairman of the Federal Reserve to support Powell’s management of the economy in a brutal pandemic recession. In this recession, the Fed’s ultra-low interest rate policy helped boost confidence and rejuvenate the economic talent market.
Biden also said that he will nominate Lael Mindard, the only Democrat on Federal Reserve Board of Governors, and Powell’s preferred replacement, as vice chairman, and second. name.
A separate supervisory vice chairman position, the bank supervisory position, and two other positions on the Fed’s board of directors are still vacant. These positions will be filled early December according to the President.
“If we want to continue to build on this year’s economic success, we need the stability and independence of the Federal Reserve — after the fierce trials of the past 20 months, I am fully confident that Chairman Powell and Dr. Brainard will provide us with The country needs strong leadership,” Biden said in a statement.
After extensive consideration, Biden’s decision has been made. It represents continuity and bipartisan cooperation in a time of high inflation, which is putting families at greater risk and increasing the likelihood of economic recovery. Biden supported Powell the Republican. Donald Trump promoted him to his first position. However, Biden ignored progressive complaints that the Fed had weakened bank supervision and hadn’t considered it in its supervision of banks. Climate change.
Powell, if confirmed by the Senate will continue to be one of the most powerful economists in the world. The Fed can raise or lower the benchmark interest rates to maintain price stability and stimulate growth. Its efforts to steer the world’s largest US economy usually have a global impact.
Since the pandemic hit the economy in March 2020, the Fed’s short-term interest rates have been close to zero, which affects a wide range of consumer and corporate borrowing costs, including mortgages and credit cards. The Fed oversees the largest U.S. bank.
Powell will be facing a mix of high-risk and difficult situations in the second term that begins in February.
Rising inflation has caused difficulties for millions of households, cast a shadow on the economic recovery, and weakened the Federal Reserve’s mission to maintain price stability. However, the Fed is yet to fulfill its second mission, which is to maximize employment, since the economy has lost more than 4 million jobs.
Inflation can accelerate if the Fed raises interest rates too slowly. This could force the Fed into taking more severe measures to manage it later. This could lead to a recession. The Fed raising interest rates too quickly can lead to a slowdown in recruitment and economic recovery.
The Senate Banking Committee must approve Powell’s renomination and then confirm it by all senators, which is possible.
Powell, a 68-year old lawyer was appointed by President Barack Obama to the Federal Reserve Board of Governors in 2011. Before this appointment, Powell had a successful career in private equity as well as held various positions in the federal government.
Powell, unlike his three predecessors does not hold a doctorate. In economics. His management of what could be the most crucial financial situation anywhere in the world, including his response to the recession caused the coronavirus, earned him high marks. The financial market panic caused by the economic downturn in spring 2020 saw 22 million jobs disappear.