On Monday, President Biden announced he would renominate Jerome Powell to the chairman of the Federal Reserve and tap Fed Governor Lael Brainard to serve as vice-chair of the Fed board.
Background: Jerome Powell is a Republican nominated by former President Trump and has led the Fed board since 2018. Powell was first nominated to the board by President Obama and still is supported by lawmakers on both sides of the aisle despite criticism from President Trump.
Brainard is a Democrat who was supported by more progressive lawmakers and longtime critics of Powell. She will serve as vice-chair once Fed Vice Chair Richard Clarida, a Republican appointed by Trump’s term expires in January.
Context: President Biden’s choice to re-nominate Powell underscores his faith in Powell to continue leading the country out of the recession caused by Covid-19. Most Republican lawmakers pushed for Biden to re-nominate Powell to Fed Chair.
America needs steady, independent, and effective leadership at the Federal Reserve. That’s why I will nominate Jerome Powell for a second term as Chair of the Board of Governors of the Federal Reserve System and Dr. Lael Brainard to serve as Vice Chair of the Board of Governors.
— President Biden (@POTUS) November 22, 2021
“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,” Biden said.
The steady leadership of Chair Powell & the Federal Reserve helped ensure our economy was able to recover from a once-in-a-generation health & economic crisis. I'm pleased our economy will continue to benefit from his stewardship, & the expertise & experience of Lael Brainard. pic.twitter.com/IKT5mwIcdO
— Secretary Janet Yellen (@SecYellen) November 22, 2021
What Democrats Say: Democrat lawmakers have pushed against Biden to re-nominate Powell claiming that his views on climate change aren’t radical enough. After Biden’s Monday announcement some Democrats publicly noted their plans to oppose the nomination.
We need a focus on climate action in all facets of the federal government, including the Federal Reserve. Jerome Powell has already proven the he won’t answer calls for climate action. I will vote no. https://t.co/o1bCD0i4yE
— Senator Jeff Merkley (@SenJeffMerkley) November 22, 2021
What Republicans Say: Most Republican lawmakers see Powell’s nomination as a win, noting his bipartisan work while navigating through the country’s economic crisis.
Smart move by @POTUS to renominate Jerome Powell to lead the Fed.
— Senator Jon Tester (@SenatorTester) November 22, 2021
Chairman Powell has been a nonpartisan steward of the economy through a major economic crisis. Our recovery is ongoing, and continuity at the Fed is critical as we keep working to lower costs for Americans.
Pleased to see President Biden renominate Jerome Powell as Federal Reserve Chair. He has led us through a challenging #COVID19 economic recovery & I have full confidence he'll help combat the inflation crisis caused by the Biden admin. I look forward to supporting his nomination.
— Senator Thom Tillis (@SenThomTillis) November 22, 2021
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