On Monday, President Biden announced he will renominate Fed Chair Jerome Powell for his second term. The anticipated decision likely comes from a tradition in which presidents reappoint the same Fed Chair leader no matter the partisan identity. If you remember, this tradition was broke by President Trump who appointed Powell rather than renominating Janet Yellen.
It’s no surprise to say that inflation has hiked up this year, with consumer prices gaining at of the one fastest rates we’ve seen in over 30 years, according to October’s reporting. It is the job of the central bank to keep the balance between consumer prices, while at the same time trying to achieve full employment. In order for this to happen, it will likely require some challenging policy changes in the future.
Furthermore, Biden also has announced he will nominate Fed Governor, Lael Brainard as the Fed’s Vice Chair.
On Monday President Biden, stated, “I’m confident that Chair Powell and Dr. Brainard’s focus on keeping inflation low, prices stable and delivering full employment will make our economy stronger than ever before.”
These nominations, will be making their way to the Senate for confirmation.
Following this news release, stock market futures are pushing higher ahead of Monday’s morning’s opening bell. As of 9:15 a.m. ET, the Dow, S&P 500, and Nasdaq futures are rising by 0.38%, 0.37%, and 1.01% respectively.