Biden Nominates Fed Chair for 2nd Term
Chairman of the Federal Reserve. It's one of the most important jobs when it comes to the U.S. economy. And with the coronavirus still weighing heavily on the economy snarling shipping and sending inflation higher, the President made his pick for the position Monday.
In choosing Jerome Powell for a second four-year term, Biden is endorsing his stewardship of the economy through what has been a brutal pandemic recession in which the Fed's ultra-low rate policies helped bolster confidence and revitalize the job market.
The decision strikes a note of continuity and bipartisanship as Powell is a Republican who was elevated to his post by President Donald Trump.
But it also shows Biden's willingness to brush aside complaints from progressives who opposed Powell's Fed and accuse him of weakening bank regulation while also acting slow to take account of climate change.
The president did not address that criticism, instead he pointed to his reasoning.
If confirmed, Powell would face a difficult and high-risk balancing act: fighting back rising inflation.
Raising record low interest rates could expedite this and the Fed is expected to do just that early next year, but it must be careful; raising rates, too slowly could accelerate inflation while going too quickly could choke off hiring and the economic recovery.
Only time will tell how that will play out, but one thing is for sure, Biden is confident in Powell.