Latest news update: Biden set to announce Fed chair nomination in ‘about 4 days’ time
Joe Biden, US President, said he expected to announce his selection of Federal Reserve Chair in “about four days”, as pressure mounts on the White House to make a decision within less than a week. full three months until Jay Powell’s term expires.
The choice is between Powell, who was appointed by Donald Trump and assumed the role in 2018, and Lael Brainard, a governor who has the support of progressive members of the Democratic Party for his stricter stance. her on legal matters.
Powell has long been seen as the favored candidate, thanks to his success in leading the economy through the Covid-19 crisis and his broad bipartisan support, which means a quick confirmation process.
But the far-reaching nature of the ongoing debate suggests Biden may be considering a more serious alternative.
Sherrod Brown, a Democratic senator from Ohio and chair of the Senate Banking Committee, said Tuesday that both Powell and Brainard will have enough votes to be confirmed.
He told Bloomberg that a decision could be made this week.
Whoever is appointed will face a number of economic challenges, including extreme inflation and a weaker labor market recovery.
The Fed has begun scaling back its $120 billion asset-buying program, but could be forced to raise rates as early as next year to avoid ongoing price pressures.