In what the Press had us believe was a close race The White House took the sensible route and nominated Jerome Powell for a second four-year term, according to a statement. PredictIt had Powell at a 79% favorite. Lael Brainard will be nominated as vice-chair replacing Richard Clarida. She was expected to get vice-chair of supervision if not chair.
The White House said both Powell and Brainard share the administration’s focus on ensuring that economic growth broadly benefits all workers along with addressing financial system risks and risks from climate change.
The White House said the Fed needs steady, effective and independent leadership. It also notes that there are three more seats to fill including the aforementioned vice chair for supervision. Those will come in early December.
Clarida’s term comes to an end on Jan 31, 2022. He’s 64 years old and will most likely leave the Fed.
The White House also says Biden will fill the three vacant seats on the Federal Reserve Board of Governors “beginning in early December, and is committed to improving the diversity in the Board’s composition.”
The reaction has been Powell will turn more hawkish with the immediate rates adjustment being the market has fully pricing in a June hike.
Biden Press Conference.
Updated: President Biden held a news conference aprox 4 hours after the announcement
Comments from Biden:
- We need stability and independence at the Federal Reserve
- Powell has stood up to political interference in the past
- Bipartisan support is important, especially now
- Powell said his top priority was climate change
- I trust Powell’s independence
Comments from Powell:
- We know high inflation takes a toll on families
- Economy is expanding at its fastest pace in many years
- The economy carries the promise of returning to full employment
- Brainard brings formidable talent to Fed
Source: The White House
From The TradersCommunity US News Desk