The move comes at a time when inflation has much of the country concerned.
President Joe R. Biden seems content with the leadership of Jerome Powell as chair of the Federal Reserve re-nominating him to another four-year term.
According to a statement from the White House, the economy’s recovery is a testament to both Biden’s economic agenda and the actions of Powell in leading the central bank. It touts Powell’s “steady leadership during an unprecedently challenging period.”
The statement also announces the nomination of Lael Brainard to serve as the vice chair of the Federal Reserve Board of Governors. It cites the leading macroeconomist’s leadership role at the Federal Reserve as being key in the nation’s recovery from the economic downturn brought on by the COVID-19 pandemic.
“While there’s still more to be done, we’ve made remarkable progress over the last 10 months in getting Americans back to work and getting our economy moving again,” Biden says in the release. “That success is a testament to the economic agenda I’ve pursued and to the decisive action that the Federal Reserve has taken under Chair Powell and Dr. Brainard to help steer us through the worst downturn in modern American history and put us on the path to recovery.”
The move comes as rising inflation concerns many across the country. The Bureau of Labor Statistics says the consumer price index rose 0.9 percent in October leading to a 12-month increase of 6.2 percent. This is the largest 12-month increase in inflation seen in 31 years. The overall increase was tied to rises in the prices for energy, shelter, food, used cars and trucks, and new vehicles.
Powell has been chairman of the Board of Governors of the Federal Reserve System since February 2018 with his term set to expire in February of next year. His term on the Board of Governors will end in 2028. He previously served as assistant secretary and undersecretary of the Treasury under President George H.W. Bush and was nominated to the Board of Governors by President Barack Obama in 2011, according to the statement.
Brainard took her place on the Board of Governors in June 2014 to fill an unexpired term which will end in 2026. She previously served as undersecretary of the Treasury and counselor of the Treasury. Before that she was vice president and director of the Global Economy and Development Program at the Brookings Institution, the statement says.