Biden formally appoints Powell to head the Federal Reserve for the next 4 years

The Dollar Index has jumped to its highest level since July 2020 following the announcement that US President Joe Biden would rename himself The current chairman of the Federal Reserve Jerome Powell for a new term (4 years) after the current term expires next February, a decision widely awaited by the financial markets.

The White House said US President Joe Biden renamed Federal Reserve Chairman Jerome Powell for a second four-year term on Monday.

The White House added that Lyle Brainard, a Federal Reserve member who was the other top candidate for the position, will become Vice President of the United States Central Bank.

“While there is still a lot of work to be done, over the past 10 months we have made significant progress in getting Americans back to work and getting our economy back. in rut, “Biden said in comments via e-mail to reporters.

He added: “This success is a testament to the economic agenda I have pursued and the decisive action taken by the Reserve Board.”

Powell, 68, and Brainard, 59, will both need Senate confirmation for their leadership in the central bank. On Friday, a source familiar with the matter said Biden spoke to both Powell and Brainard about his decision.

If confirmed by the Senate, Powell’s second term as Fed chairman will begin in early February.

Powell’s survival in this economically important stance will be a clear signal to markets to continue the Federal Reserve’s approach, which has begun to slow or reduce its massive bond purchases that have supported the recovery, according to what markets are calling the stimulus program.

Amana Capital’s head of market research and education, Walid Al-Helou, described in an interview with “Al-Arabiya” the renewal of Jerome Powell’s second term as chair of the Federal Reserve, as he was in in line with what the markets expected, and therefore we have seen the rise in indicators, in so that markets remain sensitive to a kind of political stability Pending the December board of directors, and estimates for a rate hike in 2022.

Today’s decision comes after a long period of uncertainty about who will lead the most powerful financial apparatus in the United States, as the Federal Reserve takes center stage in the face of a wave of fastest-paced price hikes in decades.

The Fed, led by Powell, has played an extraordinary and unprecedented role in supporting the economy in the face of the pandemic shock.

Powell said the board was in no rush to raise interest rates from very low levels because it wanted to see the job market recover further.

Policy makers at the US Federal Reserve are discussing the possibility of withdrawing support at a faster pace to tackle inflation, with one of the Fed’s most influential officials indicating the idea will be on the table at its December meeting.

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