Monday morning President Joe Biden announced his intent to nominate current Chair of the Board of the Federal Reserve, Jerome Powell, to a second four-year term starting in March 2022. Biden also nominated Dr. Lael Brainard to serve as Vice Chair of the Board of Governors.
“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,” said President Biden in a statement. “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.”
The appointment was greeted with relief by the markets, which rose at the signal of policy continuity.
Powell’s second term comes as the Fed faces increasing challenges on inflation, crypto currencies and possible asset value readjustments.
There are still three vacant seat on the seven-member Federal Reserve Board of Governor’s, which Biden must fill, including the important position of Vice Chair for Supervision.