US Treasury Secretary Janet Yellen, who was denied a second term as Fed chair by then-president Donald Trump and replaced with Mr Powell, gave her full support to the nomination. She has stronger views on banking regulation and climate change, and is more dovish on interest rates than Mr Powell. He was backed for his first term as chairman with an 84-13 vote.ĭr Brainard, who will replace Richard Clarida in the vice-chair role, may face opposition from Senate Republicans for her confirmation. Mr Powell, a Republican and former private equity executive who was initially appointed to the Fed board by then-president Barack Obama, is unlikely to face much opposition in the Senate when it comes to his reappointment. to help steer us through the worst downturn in modern American history and put us on the path to recovery.” “We’ve made remarkable progress over the last 10 months,” he said, adding “that success is a testament to the economic agenda I’ve pursued and to the decisive action that the Federal Reserve has taken. “I’m confident that chairman Powell and Dr Brainard’s focus on keeping inflation low, prices stable, and delivering full employment will make our economy stronger than ever before,” Mr Biden said. Two-year bonds, which give a better indicator of near-term interest rates, were up as much 8 basis points. The 10-year bond yield jumped 5 basis points to 1.60 per cent near 11.30am in New York. Bloombergįinancial markets rose on the news: investors expect the Fed to raise its key interest rate target from near zero in June, according to pricing in futures markets. In announcing the nominations on Monday (Tuesday AEDT), President Biden said both Mr Powell and Dr Brainard had helped achieve a successful economic recovery from the pandemic, and he was confident they would control inflation.įinancial markets rose on news Jerome Powell has been reappointed as Federal Reserve chairman. Washington | US President Joe Biden nominated Jerome Powell for a second four-year term as US Federal Reserve chairman and elevated governor Lael Brainard to vice-chair, in a politically expedient move that also maintains continuity at the central bank as it deals with a 31-year high in inflation.
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