Joe Biden announced his intention to reappoint Central Bank Governor Jerome Powell for another four-year term.
The left wing of the Democratic Party objected to keeping Republican Powell in his current position. As a handout to the left, the president appointed Central Bank board member Lael Brainard as Powell’s deputy. She is much closer to the Democrats: during Obama’s first term, Brainard served as Deputy Treasury Secretary for International Affairs.
While Powell’s first four years focused on increasing employment, the second appears to be focused on fighting inflation. This means a quick increase by the Central Bank of its key rate, even if it is minimal at first, and a gradual curtailment of the program of buying government bonds from commercial banks, which served the purpose of pumping funds into the banking system.
Biden, announcing his decision, praised Powell for his “consistent, firm leadership style.” Now the chief banker will have to consistently change the course of the Central Bank by 180 degrees, and the success of the new course is fraught with the risk of leveling the achievements of the initial course. So the matter, apparently, is not in consistency and firmness, but in the sensitive attitude of the formally independent Powell to the wishes of the current owner of the White House. It does not seem that the Central Bank chairman somehow defended his autonomy in negotiations with Biden, but he systematically contradicted Trump.
Newspaper headline: Jerome Powell – four more years
Source: Все материалы – Московский Комсомолец by www.vnovomsvete.com.
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