Joe Biden has chosen to renominate Federal Reserve chairman Jerome Powell, a Republican, in what appears to be a strategic move and one that has Democrats raising eyebrows while Republicans remain cautiously relieved — for the time being.
Context: Politico notes that “Biden passed on an opportunity to put the central bank under the helm of a woman and a Democrat — Fed Governor Lael Brainard — for years to come.”
Background: Biden’s announcement to keep Powell gave stability to Wall Street, which resulted in a bump of 200 points on the Dow. Getting Brainard over the finish line would be what some are calling a “thorny” endeavor, with a 50-50 split Senate, the odds would not be in Biden’s favor. Powell appears to be a conscious choice to appease most.
What Democrats Are Saying: Democrats have had mixed thoughts, with some, like former Democratic Secretary of the Treasury Robert Reich calling the move “exactly right.” However, some are not as pleased.
What Republicans Are Saying: Many Republicans appear to be pleasantly surprised by Biden’s decision to keep Powell as chair of the Federal Reserve. However, some are not as happy.