The US President finally renamed the current Fed’s current boss, despite the calls from progressive senators who wanted his replacement.
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Joe Biden renamed Jerome Powell, 68, for a second four-year term as Chairman of the US Federal Reserve from 1 February 2022. The task of the President of the Fed Is immense: this moderate republican will have to pilot the return to the normal of the US economy, while inflation reached 6.2% in October, a first for thirty years. This subject has become a major political issue in the United States and poisons the Biden Presidency, one year of the mid-term elections. “We know it’s hard for families to deal with rising prices for gasoline, food, housing and other essential goods,” said Monday, November 22, President Biden with Mr. Powell at the White House, ensuring that the phenomenon was “worldwide”.
This need for stability is one of the reasons why the Democratic President has resisted the calls from progressive senators, such as the Senator of Massachusetts Elizabeth Warren, who announced that she would vote against the renewal of Mr. Powell: she. had described as a man “dangerous” because of the easing of the control of the banks.
The President has given the Senator a semi-satisfaction since he has chosen to promote the position of Vice President of the Fed, Lael Brainard, 59, a democratic economist named in 2014 under Barack Obama at the Board of Governors .
At the end of 2017, Donald Trump had broken with the tradition that from Ronald Reagan (1981-1989) that a new President of the United States does not change the President of the Fed: he had chosen Mr. Powell, to the detriment of Janet Yellen, a Democratic Labor Specialist, which has become, in the meantime, Treasury Secretary of Joe Biden.
Purpose Stability Objective and Employment
m. Biden was slow to announce its choice because of the divisions within the Democratic Party, which fails to finally adopt the social and environmental component of its US reconstruction plan (Build Back Better). Rename Powell was risk irritating the left wing of the party and lose indispensable voices. Choosing Brainard, it was to olee the voices of the centrist senators, who want a return to minimal orthodoxy. The confirmation of Mr. Powell, who received in 2018 the support of 84 out of 100 senators, should not be a problem. “At the moment, both of uncertainty and major potentials for our economy, we need stability and independence to the Federal Reserve,” said Biden, to justify the republic of Republican Powell, insisting on the need for transparent agreements.
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