The Financial Associated Press (Shanghai Editor Xia Junxiong) reported that the current Fed Chairman Powell’s four-year term will end in February next year, and the absence of Powell has become the focus of market attention. In accordance with past practice, every time the Fed chairman changes, the president must decide whether to re-nominate a new candidate at the end of the summer or fall of that year.
According to media quoted sources, Powell has received widespread support among senior White House advisers. These officials have not yet held talks with U.S. President Biden, and a decision is not expected until September at the earliest.
According to people familiar with the matter, Biden’s officials are open to influence the Fed through personnel appointments. In addition to Powell, the term of the Fed’s Vice Chairman of Supervision Quarles will also end in October this year. However, he serves as the Fed’s governor. The term will extend to 2032.
Powell was appointed by former U.S. President Trump. Although he is a member of the Republican Party, he has received praise from many Democratic congressmen. U.S. Treasury Secretary Yellen has said that she has a good relationship with Powell and is very concerned about the currency he guided during the new crown epidemic. The policy is satisfied. Although the Fed’s personnel appointments will be finalized by Biden, Yellen will also play a key role in it. When asked if he supports Powell’s re-election, Yellen said that he would discuss this issue with Biden.
According to an anonymous White House official, Biden will choose the person he believes can most effectively implement monetary policy as the chairman of the Federal Reserve.
Some experts and analysts pointed out that if Biden wants to change the leadership of the Fed, the current Fed Governor Lael Brainard is expected to become one of the candidates. Although Brainard has been criticized by progressives for his position on climate change and financial regulation, they have expressed that they can accept Brainard as the chairman of the Federal Reserve.
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