New York (CNN Business) By choosing to stick with Jerome Powell, who Donald Trump selected to be Federal Reserve chairman in 2017, President Biden proved that he learned a valuable lesson from his former boss about continuity over partisan politics during challenging economic times.
Just as Barack Obama stayed with Ben Bernanke in the immediate aftermath of the Great Recession, despite being nominated by George W. Bush, Biden recognized that it makes sense to keep Powell so he can remain in charge of managing the post-Covid recovery.
Lael Brainard, a current Federal Reserve governor and former Treasury official in the Obama administration, was also considered to be a strong option to replace Powell as Fed chair.
Biden nominated her instead to be the Fed's vice chair, potentially setting her up to take over the Fed in 2026 after Powell's second term, if he is approved by the Senate, expires.
After all, Brainard is viewed, especially by progressive Democrats who oppose Powell , as someone who will focus more on issues like income inequality and climate change and not just the Fed's official mandates of maximum employment and price stability.
Jerome Powell, Donald Trump, Biden, Barack Obama, Ben Bernanke, George W, Bush, Powell, Lael Brainard, Obama, Brainard
CNN, Federal, Federal Reserve, Treasury, Fed, Senate