U.S. President Biden is about to decide to choose the chairman of the Federal Reserve – report shows the dispute between Powell and Brainard – Economics Bitcoin News
After the Biden administration’s infrastructure bill was passed, the President of the United States seemed to be about to decide whether to reappoint the current Federal Reserve Chairman Jerome Powell. According to some reports, Powell may be selected, but other reports suggest that Fed Board member Lael Brainard (Lael Brainard) may also become the front runner for the position.
President Biden will choose Fed chairman “soon”
In the face of rising inflation and supply chain difficulties, US President Joe Biden is considering who will manage the Federal Reserve at the end of Jerome Powell’s term in February next year. Media experts say timing”Vital,” because the U.S. Central Bank has been discuss Reduce quantitative easing (QE) and raise interest rates.Of course, these are just conversation So far, Fed members have Not yet decided Reduce large-scale asset purchases and raise benchmark interest rates.
At the same time, rising inflation has Raise its ugly head In American life, purchasing power has been declining in the past 12 months. This week’s data The Consumer Price Index (CPI) rose 6.2% from the same period last year, and the stock market fluctuated after the news. The latest CPI data even prompted Biden to issue a statement on rising inflation, because the President of the United States said that the White House will focus on getting people back to work, “reducing prices” and “ensure that our stores have sufficient inventory.”
Various reports now claim that Biden is choosing a new chairman of the Federal Reserve Board or planning to keep Jerome Powell in office. CNN contributors John Harwood and Phil Mattingly explain That”[Jerome] Powell [is] When he was about to make a decision, he was seen as the front runner in Biden’s choice to be the chairman of the Federal Reserve. “The CNN report pointed out that Biden’s decision could happen as early as next week. It is also assumed that Biden will sign a new infrastructure bill on Monday.
Brainard “more supports left-leaning” politicians, members of the Financial Services Commission urged Biden to choose a new leader, and Powell is still “favored” by “both sides.”
11 days ago, Biden talked about his decision on the chairmanship of the Federal Reserve at a press conference and hinted that he would make a choice “soon.” Biden told reporters: “I have considered this a lot. I have been meeting with my economic adviser to discuss what is the best option. We have many good choices.” “But I am not going to speculate now,” the president added. Say. Despite the CNN report, other editorials claimed that Biden might choose Lyle Brainard, a member of the Federal Reserve Board of Governors. Rob Garver, a writer at voanews.com, Say The recent surge in inflation may affect Biden’s Fed Chairman’s decision.
Garver emphasized that Powell is a Republican and was selected by former US President Donald Trump. As far as Brainard is concerned, she is a Democrat and “is more aligned with left-leaning members of her party, such as Senator Elizabeth Warren of Massachusetts,” Garver elaborated. However, Garver further explained that the current Fed chairman is currently “favored.” Christopher Russo, a researcher at the Mercatus Center at George Mason University, told VOA’s Garver: “Powell has established a lot of credibility with both the Republican and Democratic parties.” Russo further added:
During the pandemic, the Fed adopted a flexible average inflation target, which means that they will push inflation above the target when inflation is below the target. Powell has done a lot of work to explain this policy to skeptics in Congress. The importance of.
Reports about Biden’s choice of a new Fed chairman will soon be after mid-September.Sources connected to Washington,” said Biden will re-nominate Jerome Powell. However, three politicians on the House Financial Services Committee have already Urge Biden Choose a new Fed chairman to solve social justice and climate change issues. Representatives of the U.S. Democratic Party Alexander Ocasio-Cortez (AOC), Rashida Tlaib and Aiana Presley emphasized on August 30:
Under his leadership, the Federal Reserve has taken almost no action to mitigate the risks that climate change poses to our financial system.
recent pass through The 1,600-page “Rebuild Better” Infrastructure Act distribute Approximately US$550 billion is used to deal with the so-called climate crisis in the United States.Despite a lot Quantitative Easing (QE) Strategy and benchmark interest rates are suppressed at zero, and Jerome Powell’s efforts since he was appointed by former President Trump may not be good enough for Democratic members.
After signing the new infrastructure bill, how do you think Joe Biden may choose the new chairman of the Federal Reserve next week? Please tell us your thoughts on this topic in the comments section below.
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