After overseeing the largest currency expansion in US history, Biden names Powell to lead the Fed – Economics

US President Joe Biden announced on Monday his intention to renominate Jerome Powell as chairman of the Federal Reserve. Major indexes and stocks gained on news that Powell will be given a second term as central bank chief.

Biden decides to renominate Fed Chairman Jerome Powell

On Monday, President Joe Biden revealed that he has chosen Jerome Powell to lead the Federal Reserve for another term. Powell will serve as chairman during his second term, while Lael Brainard will serve as Fed vice chairman. Powell's appointment follows uncertainty over who would take his seat.

At the end of August, the three Democrats had Alexandria Ocasio-Cortez (AOC), Rashida Tlaib and Ayanna Pressley Biden urged to elect a leader who will address social change and the so-called climate crisis. However, two weeks later, sources with ties to Washington told the press that Biden would rename Powell.

Jerome Powell selected for a second term! Stink to the moon! ️

—Dr. Parik Patel, BA, CFA, ACCA Esq. (@ParikPatelCFA) November 22, 2021

Last week, headlines further detailed that President Biden shortly before his decision and Lael Brainard was listed as the top pick. Following Biden's decision to nominate Powell for a second term, US Treasury Secretary Janet Yellen called that the decision would allow the American economy to “continue to benefit from his administration.”

“America needs steady, independent and effective leadership of the Federal Reserve so that it can achieve its twin goals of keeping inflation low and prices stable and creating a strong labor market that benefits workers with better jobs and higher wages generally,” White House explained in a statement about Powell's renomination. The White House added:

President Biden has full confidence in the experience, judgment and integrity of Powell and Brainard to continue to fulfill these mandates and build our economy back better for working families.

Peter Schiff: “Inflation will certainly get worse with Brainard as deputy chairman”

Biden and a majority of U.S. politicians are always looking for ways to finance their goals, and Powell's re-election is likely to keep the flow of money strong.

BREAKING: Biden nominates Fed Chairman Jerome Powell for a second term.

Brrrrrrrrrrrrrr.

— Morning Brew ☕️ (@MorningBrew) November 22, 2021

Economist and gold bug Peter Schiff explained that this is likely the case. “As expected, Biden has named Powell as Fed chair,” Schiff said tweeted. The economist continued:

Despite [him doing] lousy jobs, as evidenced by maintaining QE and ZIRP in the face of the highest inflation in 30 years, Powell was the politically safe choice. With Brainard as vice chairman, inflation is sure to get worse.

People also highlighted that Jerome Powell oversaw the expansion of the U.S. money supply more than ever before in American history. Undoubtedly, we live in interesting times, with Jerome Powell, the man who saw a 40 percent expansion in the money supply in a matter of months and injected $5 trillion into the Fed's balance sheet in the time it takes to have a Domino's pizza delivered, the "hawkish choice", a person called "Quoth the Raven" wrote.

What do you think about Joe Biden picking Jerome Powell for a second term as Federal Reserve chief? Let us know your thoughts on this topic in the comments below.

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