Economics

Biden Keeps Powell as Fed Chief, Names Brainard Vice Chair

  • Will choose vice chair for supervision, other governors later
  • Leaders face challenge of fastest inflation in decades
Biden Nominates Powell as Fed Chief, Brainard Vice Chair
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President Joe Biden preserved continuity at the Federal Reserve by selecting Jerome Powell for a second term as chair and elevating Lael Brainard to vice chair as the U.S. central bank grapples with the fastest inflation in three decades and the lingering effects of Covid-19.

The decision, announced by the White House on Monday, rewards Powell for helping rescue the U.S. economy from the pandemic and tasks him with protecting that recovery from a surge in consumer prices. It also restores the tradition of the president sticking with the chair he inherited from his predecessor. Powell, a Republican, will likely win a smooth confirmation in the Senate, although progressive Democrats may be disappointed by the choice.