President Joe Biden has replaced Jerome Powell for a second term
U.S. President Joe Biden has left current Fed Chairman Jerome Powell for a second term as the crypto community prepares for more money printing, as we may see more in today’s crypto news.
US President Joe Biden has stepped down from Jerome Powell as chairman of the Federal Reserve and Lael Brainard as vice chairman.
This would put Powell in power for an additional four years after Senate ratification, and would allow his anti-inflation agenda to be put to the test. Biden announced his nominations today in a White House statement, noting the decline in unemployment in the US economy and the rapid recovery as a result of Powell’s decisive action. The statement reads:
“Chairman Powell has taken steadfast leadership at a time of unprecedented challenges, including the largest economic recession in modern history and attacks on the independence of the Bureau. Federal Reserve.”
The President expressed appreciation for Powell and Brainard’s belief that climate change and its economic impact must be addressed. While the traditional mandate of the Fed has been to keep unemployment down and inflation down, he said it will realign its goals. Powell became Fed chairman in 2018, while Brainard became a board member in 2014 after serving as junior secretary to the US Treasury Department. With the pandemic never ending and closing worldwide, Powell’s response has been an aggressive government stimulus measure to mitigate the impact on the US economy. Under his leadership, about 40% of the US dollar in circulation has been printed in the past 12 months, and many speculate that this has contributed to soaring inflation, which hit a 30-year high a month ago.
Powell has since announced plans to cut $ 120 billion in its monthly bond purchase program in response to soaring prices. However, Powell confirmed that he had no intention of banning cryptocurrencies like Bitcoin. He shares SEC chairman Gary Gensler’s belief that stablecoins need to be regulated. The chairman recognized BTC as a potential alternative to gold but called it a speculative currency and failed because of its inability to become a store of value or a medium of exchange. Bitcoin miners disagree, and Senator Cynthia Lummis suggests using BTC to stabilize the volatile U.S. dollar as the coin spiraled under Powell’s leadership, but Anthony Pompliano even said his followers are focused on inflation should prepare after Powell gave up.