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.
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.
Biden's decision to keep Powell as Fed chair and make Lael Brainard vice-chair (presumably in charge of financial regulation) is exactly right. Economy needs continuity of monetary policy but tougher hand on regulation.
— Robert Reich (@RBReich) November 23, 2021
“I will vote against him.”
— ABC News Politics (@ABCPolitics) November 22, 2021
Sen. Elizabeth Warren says it is “no secret” she opposes Federal Reserve Chair Jerome Powell being nominated by Pres. Biden for a second four-year term. https://t.co/8Dh2mzW3xA pic.twitter.com/Xe1CkcIpka
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.
For anyone surprised at the Powell news – reminder. ↘️ https://t.co/nORzrEVxJD pic.twitter.com/cCfl2ocHjs
— Murshed Zaheed (@murshedz) November 22, 2021
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.
Good move by President Biden to keep Jerome Powell as fed chair despite pressure to appoint a socialist.
— Miranda Devine (@mirandadevine) November 22, 2021
While I disagree with some of the Fed’s policies on QE that have created inflationary pressures on our economy, I will vote to confirm Jerome Powell for a second term.
— Rob Portman (@robportmanOH) November 22, 2021
I hope he will do what he can from the monetary side to rein in inflation going forward.