Home Business Biden nominates Powell for re-election as Fed chairman, inflation threat remains high-BBC News

Biden nominates Powell for re-election as Fed chairman, inflation threat remains high-BBC News

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Powell will continue to hold this position for four years.

US President Biden nominated Chairman Powell of the Federal Reserve Board (Fed) for re-election on Monday (November 22) for a four-year term. Another popular candidate, Lael Brainard, was nominated as vice chairman. The two need to be confirmed by the Senate before they can formally assume the above-mentioned positions.

Powell was nominated by former President Trump in November 2017 and formally took office in February 2018. It is scheduled to expire in February 2022. Although nominated by Trump, the Fed has always focused on maintaining policy independence. After Powell took office, he reversed the loose monetary environment, frequently raising interest rates and shrinking the balance sheet to prevent the economy from overheating. But this move was criticized by Trump, believing that his policies hurt economic growth.

At the beginning of 2020, the new crown epidemic hits. Powell’s policy suddenly turned, not only an emergency cut in interest rates, but also unlimited quantitative easing. The intensity of the policy was beyond the market’s expectations. The influx of dollars into the market stimulated the economy, but it also brought a series of sequelae such as high inflation.

Biden pointed out that Powell’s “stable leadership” has calmed the panic market, and he believes that monetary policy can support full employment. “I believe Powell is the right person to help us tide over the difficulties.”

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