Federal Reserve Chair Jerome Powell gets a second term from US President Joe Biden. Despite ongoing rumours that Biden would go for a new president for the US umbrella organization of central banks, he decided to choose Powell again.
Lael Brainard, who has been mentioned many times as a possible successor to Powell, is named vice chairman.
Powell was named chairman of the Fed in February 2018 by former President Donald Trump. He succeeded Janet Yellen, now Secretary of the Treasury. She was not given a second term, which was considered remarkable at the time.
Brainard, who was a dream candidate, especially for the left-wing of the Democratic Party, will therefore become the new vice president. She succeeds Richard Clarida, who had become discredited by trading in shares. He put money into an equity fund a day before Powell announced the Fed’s response to the corona crisis.
According to Clarida, that was a much longer planned transaction, but it sparked questions last month from Elizabeth Warren, Democratic senator for the state of Massachusetts.
Warren also believed that Powell was no longer pure by allowing such transactions and was one of Brainard’s strongest advocates. The Fed has since tightened the rules for stock trading by its own directors.