Powell is still the frontrunner,” Pike added.įed trading scandal could push Biden away from Powellīut the the situation has changed in the past few months, which raises the possibility that Biden could instead go the Trump route and dump Powell after one term – just as Trump chose Powell instead of nominating Janet Yellen (who is now Treasury Secretary) for a second stint as Fed chair. “I think he’s leaning more towards reappointing Powell and there is support for that from the other side even if there is pushback from some in his own party. It’s dissimilar to the last administration,” said Scott Pike, senior portfolio manager at Income Research + Management. “Biden fits more into the camp of being an older-school politician. (Photo By Tom Williams/CQ-Roll Call, Inc via Getty Images) Tom Williams/CQ-Roll Call, Inc./Getty Imagesįederal Reserve is banning officials from buying individual stocks and restricting active trading Eccles Federal Reserve Board Building on Constitution Avenue, NW, is pictured on Tuesday, August 17, 2021. UNITED STATES - AUGUST 17: The Marriner S. Short-term rate hikes are also expected as soon as the end of 2022. The Fed is expected to soon start the process of cutting back on its bond purchases that helped keep long-term rates low, a process known as tapering. Powell was chosen by former President Donald Trump for the job in 2017. Bush.īy nominating Powell to remain as the boss of the central bank, Biden would be signaling that he wants continuity as the economy rebounds from the pandemic and the Fed begins to unwind its stimulus measures. Until a few months ago, it seemed like a slam dunk that Biden would follow the lead of his former boss, Barack Obama, and ignore partisan politics.Īfter all, Obama stuck with Ben Bernanke for a second term during the immediate aftermath of the Great Recession in 2009 – even though Bernanke was first selected by former President George W. Powell’s tenure as Fed chair is set to end in February, and a growing number of prominent Democrats in Washington are calling on Biden to choose someone else to head the Fed. But the White House will soon need to tackle another major financial issue: whether or not to nominate Federal Reserve chairman Jerome Powell for a second term. President Joe Biden faces a number of economic concerns, from supply chain disruptions to inflation.
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