WASHINGTON: President Joe Biden said on Monday that he will propose Jerome Powell for a second term as chairman of the Federal Reserve and Lael Brainard as vice chair. According to sources, "Chair Powell has offered consistent leadership during an unprecedentedly difficult period, encompassing the worst economic crisis in modern history and attacks on the Federal Reserve's independence."
The Republican Fed chair, whose four-year tenure ends in February, is backed by Republican lawmakers and Treasury Secretary Janet Yellen, but has faced criticism and resistance from some progressive Democrats for dubious stock trading by Fed officials during the pandemic and Fed policies.
Powell "has taken too many moves to undercut the Fed's control of our major banks and deregulate Wall Street," according to Democratic Senator Elizabeth Warren, who also opposed Powell's confirmation in 2018. Lael Brainard, a member of the Federal Reserve Board, has previously been proposed as Powell's replacement by progressives.
Despite their disagreements with Powell on inflation and other topics, Republican senators are anxious that a replacement will be more liberal, and will likely vote to confirm Powell for a second term.
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