By: Shane Weston
November 22, 2021
This morning, President Joe Biden appointed Jerome Powell to his second term as the chairman of the U.S. central bank. He will serve another four year term and Governor Lael Brainard will be promoted to vice chair. There had been lots of speculation within the last couple weeks on whether we would see if he was going to remain put or not due to the current state of the economy.
Jerome has guided the Fed and the country’s economy through the Covid-19 recession by his implementation of monetary stimulus to millions of Americans. He also has helped lower the unemployment rate that was at a record high (14.8%) last April.
The White House released a statement regarding the President’s decision by saying, “Chair Powell has provided steady leadership during an unprecedented challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve.” In addition, President Biden gave high praise to the chairman for his “decisive” actions throughout the pandemic.
While Powell is glad to remain in charge, it will come at a challenging cost. The United States continues to fight the worst recorded inflation in over three decades. The CPI (consumer price index) number last month hit a staggering 6.2% which more than doubles the Feds target rate.
The Feds chairman will see a very different term than his first as he tries to recover the nation’s economy.