Biden taps Powell for second term as Federal Reserve chief

Federal Reserve Chairman Jerome Powell is set to remain the steward of the United States economy after President Joe Biden on Monday nominated him for a second, four-year term. “In the last administration, he stood up to unprecedented political interference and in doing so successfully maintained the integrity and credibility of this institution,” said Biden.”It’s just one of the many reasons Jay has support from across the political spectrum.” Biden also highlighted Powell’s efforts to bring the economic impacts of climate change more firmly into the Fed’s focus when crafting policy. By selecting Brainard to be Powell’s number two at the Fed, Biden said he is ensuring the central bank’s leadership has broad support across the political spectrum. Many Fed watchers see Powell’s renomination on Monday as confirmation that the US central bank is on track to start hiking rates sometime near the middle of next year. “The continuity in Fed leadership likely signals continuity in the current monetary policy stance, and we continue to expect liftoff shortly after tapering ends, with the first hike in July 2022, the second in November, and a pace of two hikes per year thereafter,” said Goldman Sachs economists led by Jan Hatzius in a note to clients on Monday.