Washington-related sources say Joe Biden will rename Fed Chairman Jerome Powell
DAnonymous sources familiar with the matter say the Biden administration may allow Federal Reserve Chairman Jerome Powell to continue to run the central bank. The news follows three U.S. officials asking Biden to replace Powell with a central bank executive who deals with equality and climate change.
Jerome Powell will stay for a second mandate, according to sources
A report by Greg, contributor to Market Watch Robb shows that US President Joe Biden and his administration will likely keep Jerome Powell at the head of the central bank. Robb says the sources are "from analysts who keep an eye on Washington for Wall Street" and that they are "now fairly certain of his re-appointment.
Jerome Powell, chairman of the Federal Reserve, led the bankcentral during a period when the Fed expanded the monetary offer like never before in history. Many complaints have been directed against Jerome Powell and the Federal Reserve schemes .
Speaking with Market Watch, Stephen Myrow, Managing Partner of Beacon Policy Advisors said,“ My base case is Powell now. This is the consensus. "Meanwhile, Robb also reported that the US Managing Director for Eurasia Group, Joe Lieber, agreed. " I think it's highly likely that 'They rename Powell, "Lieber said on Tuesday. However, the Biden administration may receive complaints against Powell from members of the Democratic Party.
Three specific US representatives (Alexandria Ocasio- Cortez (AOC), Rashida Tlaib and Ayanna Pressley) want him to address other issues other than Covid-19. AOC slammed Powell and has said: "Under his leadership, the Federal Reserve has taken very little action to mitigate the risk climate change poses to our financial system." The three US officials want someone who will expand the monetary system to combat things like equality and so-called climate change.
Joe Lieber: "Choose Powell is a slam-dunk in terms of market reaction and a slam-dunk in terms of the Senate ”
Myrow pointed out to Robb that“ [Biden now] has a lot on his plate too, ”and Leiber explained that it would be "good policy" to choose Powell again. "This is a slam-dunk in terms of market reaction and a slam-dunkin Senate terms - Powell will get 80 votes, "Leiber explained in his interview.
Meanwhile, last month's consumer survey The Expectations Report (SCE) shows that many American households Worried about rising inflation. Central bank measurements from the report released this week indicate that SCE respondents expect one-year inflation to rise to 5.2% and that three-year expectations will be around 4%.
It is likely that Biden will pick someone who will pursue monetary expansion to meet the administration's purposes. Despite the complaints of a few Democrats, Powell has shown he is ready to increase the US money supply, remove interest rates and maintain strong quantitative easing (QE). Every Federal Reserve chairman ever cchosen to lead throughout history has always been willing to expand the powers of the Fed.
What do you think of the fact that Joe Biden has potentially chosen Jerome Powell to lead the Fed again Fed for a second term? Let us know what you think of this topic in the comments section below.