US President Joe Biden extends Fed Reserve Chair Jerome Powell's tenure

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US President Joe Biden extends Fed Reserve Chair Jerome Powell's tenure

American president Joe Biden extended the term of Jerome Powell, the incumbent Chair of the US Federal Reserve for another four years on 22nd November. Powell’s first four-year term began in 2017 under the presidency of Donald Trump.

Lael Brainard has been appointed vice-chair. Brainard was in contention for the Fed Reserve’s top spot alongside Powell. In his statement to the press, President Biden said that the decision to renominate Powell was that the country’s economy had been making strides despite several setbacks, including the Covid-19 pandemic.

Jerome Powell's Fed Reserve legacy under three US Presidents

“While our country still faces challenges as we emerge from the pandemic, we have made enormous progress in bringing our economy back to life and getting Americans back to work.

Since the President took office, the economy has created over 5.6 million jobs, unemployment has fallen to 4.6% – two years faster than projected – and the pace of our economy’s growth outstrips the rest of the developed world,” Biden’s statement read.

The statement also mentioned that these growths were only possible because the President and the Chair were working in tandem with each other to bring out the best for the American economy. “That outcome is a testament to the success of the President’s economic agenda, and it is a testament to decisive action by Chair Powell and the Federal Reserve to cushion the impact of the pandemic and get America’s economy back on track.

Chair Powell has provided steady leadership during an unprecedently challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve,” it noted. Jerome Powell’s renomination only needs the Senate’s approval.

The 68-year-old made his foray into the Fed Reserve as one of its governors in 2012 after getting nominated from then President, Barack Obama. Prior to his career in the Federal Reserve, Powell was an investment banker at Wall Street.