In the critical period of economic recovery after the pandemic, President Joe Biden faced a major decision: whether to reappoint Fed Chairman Jerome Powell.
Powell’s four-year term will expire in early 2022. Although he has received broad support from both parties, the president can decide to remove him and appoint new candidates, effectively canceling the appointment of his predecessor, Donald Trump.
Although Biden did not indicate the decision he planned to make, Reuters investigation It was discovered this week that most economists believed that Biden would choose to maintain the status quo and keep Powell in office.
Among the 40 economists surveyed, 36 believe that Powell will stay in office, although he does have some competition.
“Powell does have some fierce competition, especially from one of his governor colleagues, Lael Brainard. She is the second most likely person, but Powell is now the most popular person. “Credit Suisse chief economist James Sweeney told Reuters.
Any changes in the Fed may affect the market, and Biden will have to carefully evaluate how his changes will affect the recovering economy, which is still facing high inflation and low employment activities brought about by the COVID-19 pandemic.
James McCann, deputy chief economist at Aberdeen Standard Investments, told NBC News Biden has the opportunity to reshape the Fed’s board of directors’ policy orientation.
“He has the possibility of a real reorganization of the Federal Reserve Board,” McCann said.
