The president of the United States of America, Joe Biden, named Powell, and Lael Brainard as president and vice president of the Fed.
US President Joe Biden nominated Jerome Powell as Chairman of the Federal Reserve (FED) for the second year in a row. The White House made the announcement Monday morning, various news outlets reported.
Powell got appointed chairman of the Fed by the Trump administration and took office in February 2018. More recently, the Republican has led the nation’s economy amid the pandemic crisis. As part of its leadership, and the effort to respond to the COVID-19 pandemic, the US central bank implemented an unprecedented stimulus policy, notably doubling the size of the Fed’s balance sheet to USD 8.7 trillion to inject liquidity to global markets.
The success of Powell’s actions to cushion the impact of the pandemic and get the US economy back on track has led him to win a second candidacy. President Biden highlighted this information in the statement.
Powell Again for FED Presidency
The announcement about Powell’s nomination arrives after some spread rumors about the Biden administration considering Fed Governor Lael Brainard for the job. Although it is a more attractive option for progressives, the White House assured that it picked up Brainard to fill the position as vice chairman of the Federal Reserve board of governors.
Along with Powell as president and Brainard as vice president, Biden expressed that the duo would help keep the focus on low inflation, stable prices, and provide more employment for the American people.
The new staff would be taking rapid action to address the economic risks posed by climate change and anticipate emerging risks in US financial system.
Powell’s current four-year term as Fed president will reach its end in February 2022. The Senate would confirm the nominations of Powell and Brainard in the coming days.
The announcement seems to represent a positive impact on investors; the revelation coincided with a 0.7% rise for the S&P 500, as well as a modest boost to stock market futures. Meanwhile, government bond yields were higher across the board.
CoinDesk highlighted that both Powell and Brainard share similar perspectives on economic policies and cryptocurrency regulation, so the decision did not represent, according to economists, vast importance regarding the possible impact on the industry and the market. of digital currencies.
Both officials share the conviction that cryptocurrencies should not grow without restrictions to the point where they can threaten the existing financial system. On the other hand, the report says that both leaders seem to coincide with a tolerant stance in the face of inflation, which could be positive for Bitcoin.
The narrative around Bitcoin as a haven asset for inflation has gained strength amid this panorama. The top cryptocurrency quadrupled in price in 2020, and this year has reached new heights above $ 68,000.
Some analysts emphasized that this price mark above $ 60,000 is a sign that an increasing number of investors are relying on the adoption of Bitcoin to protect themselves from the effects of inflation.
By: Jenson Nuñez.
