FX.co ★ Biden to pick new Fed chair soon

The Wall Street Journal, citing reliable sources, has reported that the appointment of a new head of the Federal Reserve is of primary importance to US President Joseph Biden.

On Thursday, November 4, the American leader met with Chair Jerome Powell and Lael Brainard, a member of the Board of Governors of the Federal Reserve. According to The Wall Street Journal, President Biden has not made a final decision yet. Jerome Powell has been at the helm of the regulator for 4 years. His term is up in February 2022.

Earlier, Bloomberg, citing authoritative sources, said that the Biden administration would advise the president that he should reappoint Jerome Powell for a second term. Such a scenario would not wreck Brainard’s career as she would be promoted to become the Fed's vice-chair responsible for banking supervision.

Currently, Brainard is considered a major contender to replace Jerome Powell as Fed chair. At the same time, her appointment as the Fed's vice-chair responsible for banking supervision would stabilize the situation in the upper financial circles in the US. Experts suggest this could calm down the so-called "progressive democrats" dissatisfied with Powell’s dovish stance on monetary policy.