The U.S. banking lobby has a huge win on its hands today: Former U.S. Dallas Fed advisor
Federal Reserve Chair Jerome Powell pledged to “use our tools” to aid jobs and battle fast-rising consumer prices as President Joe Biden chose him to lead the U.S. central bank for another four years and elevated Governor Lael Brainard to be vice chair.
“We know that high inflation takes a toll on families, especially those less able to meet the higher costs of essentials like food, housing, and transportation,” Powell said Monday in brief remarks at the White House after Biden announced his pick. “We will use our tools both to support the economy and a strong labor market, and to prevent higher inflation from becoming entrenched.”
Biden preserved continuity at the Fed by selecting Powell for a second term and promoting Brainard as the U.S. central bank grapples with the fastest inflation in three decades and the lingering effects of COVID-19.
“I’m committed to putting working Americans at the center of my work at the Federal Reserve,” Brainard said in her remarks following Powell, adding “this means getting inflation down at a time when people are focused on their jobs and how far their paychecks will go.”
Brainard would replace Richard Clarida in the vice chair slot and may face opposition from Senate Republicans for her confirmation given her tough line on bank regulation. She was interviewed by Biden for the chair position and was seen as a possible candidate for the separate job of vice chair for supervision, which remains vacant.