Powell Retained as Federal Reserve Chair

By:
Chris Gaetano
Published Date:
Nov 22, 2021
Fed Chair Jerome Powell

President Joe Biden has decided to keep Federal Reserve Chair Jerome Powell on for another term, evidently preferring not to rock the boat at a delicate time. Lael Brainard, who had been considered as a possible replacement, will instead serve as vice chair for the central bank.

The White House said that Powell has provided steady leadership during an unprecedently challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve. The president praised both Powell and Brainard for helping shift the focus of the central bank toward the needs of workers of all backgrounds, as well as addressing the financial risks posed by climate change and other emerging risks. 

"As I’ve said before, we can’t just return to where we were before the pandemic, we need to build our economy back better, and 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 Biden. "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. Fundamentally, if we want to continue to build on the economic success of this year we need stability and independence at the Federal Reserve – and I have full confidence after their trial by fire over the last 20 months that Chair Powell and Dr. Brainard will provide the strong leadership our country needs."

The Fed still has three vacant seats on the Federal Reserve Board of Governors to fill, including the important position of vice chair for supervision. Biden intends to make those appointments beginning in early December, and is committed to improving the diversity in the board’s composition.

Click here to see more of the latest news from the NYSSCPA.