President Biden elects Jerome Powell as the next Fed chairman

President Joe Biden has recommended Jerome Powell to serve an additional four-year term as Chairman of the Board of Governors of the Federal Reserve System.

In an announcement on Monday, the White House announced that President Biden Powell would be nominated to head the Federal Reserve after his current term ends in February. Law enforcement cited Powell’s “decisive action” to mitigate the economic impact of the pandemic, create 5.6 million jobs and an unemployment rate of 4.6 percent.

In addition, Biden has elected current Fed board member Lael Brainard as vice president of the agency. Brainard’s 14-year term as a member of the Federal Reserve is slated to expire in 2026, while Powell’s term ends in 2028.

“I am confident that Chairman Powell and Dr. Brainard’s focus on keeping inflation low, keeping prices stable and ensuring full employment will make our economy stronger than ever,” said the US President. “Together they also share my deep conviction that urgent action is needed to address the economic risks of climate change and to anticipate new risks in the system.” Our finances “.

The Board of Governors of the Federal Reserve System is expected to have seven members, each nominated by the incumbent US President and approved by the Senate, for a term of 14 years. Although Powell will only serve four years of his current term if he is confirmed as Fed chairman, he will still attend a Senate Banking Committee hearing and then a Senate revocation vote. Randal Quarles announced on November 8 that he would resign in 2022, giving President Biden the opportunity to fill three Fed seats.

Today’s selection represents only a minor change in leadership at the Fed, however, as Biden refuses to accept incumbent Vice President Richard Clarida to resume his mandate from January 2022, when three vacancies may be empty. The White House said Biden will announce his selection for these positions, as well as the Fed’s vice chairman of the supervisory board, in early December, with an emphasis on “improving diversity on the board of directors.”

Related: The Fed’s restrictive comments and concerns about stablecoin regulation trigger a market sell-off

During his tenure as Fed chairman, Powell has been vocal about the role of digital assets in US markets as the area grows in size and popularity. He said in September that the agency was “actively working on the issuance of CBDCs” but was unable to support a mass ban on cryptocurrencies like Bitcoin (BTC).