Jerome Powell, the current chairman of the US Federal Reserve, announced on Monday his candidacy for a second term at the head of the institution, supported by President Joe Biden.
Jerome Powell is a candidate for his own succession at the head of the FED. He has held the post since 2017, and has thus survived the virulent criticism of former President Donald Trump, although appointed by the latter. If new president Joe Biden supports him for this second term, it is because the positions of the former investment banker could be useful to him to complete the most consequential overhaul of the US monetary system since the 1970s.
Indeed, Joe Biden wants Powell to be able to push his economic policy even further, which, contrary to what has been done for the last four decades, places more emphasis on employment than on the fight against inflation. The challenge for the monetary institution and the President in the coming months and years will be to maintain employment growth while ensuring that the recent high inflation does not take root.
“While there is still much work to be done, we have made remarkable progress in the last 10 months to put Americans back to work and get our economy moving again,” Biden said. “This success is a testament to the economic agenda I have pursued, and to the decisive action and support of the Federal Reserve.”
Citing Powell’s “steady leadership” in calming panicked financial markets in the past and his belief in monetary policies that support job creation, Biden said their collaboration could only benefit the country.
Powell’s second term still needs to be approved by the Democratic-controlled but closely divided Senate. The decision to stick with Powell, a Republican and former private equity lawyer appointed by Donald Trump, may not be an easy one, despite the support of several Republican senators.
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