Biden Retains Powell As Fed Chairman

Signalling his desire for policy continuity at the country's central bank, U.S president Joe Biden nominated Jerome Powell for a second four-year term as chair of the Federal Reserve.

Lael Brainard, who enjoys the backing of progressives wing of ruling Democrats and is the lone Democrat on the Fed's Board of Governors, was picked as the vice-chair of the central bank. She earlier served as the Treasury department’s undersecretary for international affairs under president Barack Obama administration. She was also seen as a potential contender for the post of Treasury Secretary in Biden administration but the job went to Powell's predecessor Janet Yellen.

Powell, whose term expires in February, was appointed by President Donald Trump as Fed Chairman in 2017. A Republican, Powell was nominated for the Fed's Board of Governors in 2011 by president Barack Obama.

Powell has generally pursued a loose monetary policy which is credited for unemployment reaching historic lows during the pre-pandemic time. Powell has won appreciation for shaping a robust response to the coronavirus-induced recession especially timely policy interventions to prevent potential collapse of financial markets.

Powell's monetary policies have recently come under scrutiny with U.S inflation soaring to record highs. The Federal Reserve sheet size has swelled to over $8 trillion under his stewardship due to massive monthly securities purchases.

A controversy also erupted earlier this year over revelations that multiple Fed officials had been buying and selling stocks at a time when the central bank’s policies were designed to improve market functioning especially during Covid-19 pandemic. In response, the Fed announced a wide-ranging ban on officials buying individual stocks and bonds and limits on other investment activities as well in response to controversy over dubious trading practices by top officials.

“While there’s still more to be done, we’ve made remarkable progress over the last 10 months in getting Americans back to work and getting our economy moving again. That success is a testament to the economic agenda I’ve pursued and to the decisive action that the Federal Reserve has taken under Chair Powell and Dr. Brainard to help steer us through the worst downturn in modern American history and put us on the path to recovery" Biden said in a statement.

"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" Biden added.