President Joe Biden elected Jerome Powell to a new four-year term as Chairman of the Federal Reserve.
The White House announced in a statement Monday that President Biden will nominate Powell to chair the Federal Reserve when his current term expires in February. The executive cited Powell’s “decisive action” to limit the economic impact of the pandemic, as well as creating 5.6 million jobs and 4.6% unemployment.
In addition, Biden elected current Fed Board member Lyle Brainard as deputy director of the agency. Brainard’s 14-year term as a member of the Federal Reserve will end in 2026 and Powell in 2028.
“I am confident that the efforts of Chairman Powell and Dr. Brainard to maintain low inflation, stable prices and full employment will make our economy stronger than ever,” he said. Together, they also share my deep conviction of the need for urgent action to address the economic risks associated with climate change and to be at the forefront of new risks in our financial system.
The Federal Reserve is expected to consist of seven members, each of whom will nominate the current president of the United States, be approved by the Senate, and serve a term of 14 years. Although Powell will only serve four years in his current term, if confirmed as Federal Reserve Chairman, he will still attend the Senate Banking Committee’s confirmation hearing before the vote on his nomination to the Senate. Randall Quarles announced on November 8 that he will be stepping down by 2022, giving President Biden the opportunity to take three seats on the Federal Reserve.
However, Monday’s election represents only a slight change in leadership at the Federal Reserve, as Biden has not used incumbent Deputy Leader Richard Clarido to continue his duties since January 2022, when three vacancies are likely to emerge. The White House said Biden’s goal was to announce his selection for these positions, as well as the Federal Reserve’s deputy comptroller position, in early December, with a focus on “improving board diversity.”
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During his tenure as Chairman of the Federal Reserve, Powell spoke candidly about the role of digital assets in the US markets as this space grows in size and popularity. In September, he said that the agency was “actively working on the issuance of CBDCs,” but was unlikely to support a general ban on cryptocurrencies such as Bitcoin (BTC).