Monday, December 6, 2021

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    Biden Nominates Jerome Powell To Remain As Fed Chairman

    And the winner is … Jerome Powell!

    President Joe Biden has appointed current Federal Reserve Chairman Jerome Powell to serve another term as Head of the Federal Reserve Board.

    The list has been reduced to two candidates: current Federal Reserve Chairman Jerome Powell and current Federal Reserve Board Lael Brainard.

    Or, as the Wall Street Journal editorial board named, “Tweedledum and Tweedledum.”

    Well, that’s not very good, is it?

    But again, it’s a tough life for the Fed Chair. It’s a job and someone has to do it.

    Following Biden’s decision to continue his current job, there are some challenges facing Jerome Powell.

    In addition to the Fed’s main purpose of keeping inflation low and maintaining maximum employment, the Fed needs to regulate the banking industry. The banking industry has become a major problem after the dark ages of the 2008 financial crisis.

    There are open questions about how the Federal Reserve addresses climate-related issues, and even a hot new agenda item, cryptocurrencies.

    Come to the bank near you … Fedcoin! Hey, because even the Fed wants some of that crypto action.

    So where does Powell stand on these issues? Now let’s summarize the differences between him and the Federal Reserve runner-up, Lael Brainard.

    Financial policy

    In monetary policy, the two candidates were not too far apart. Both endorsed simple money, and Brainard endorsed all monetary policy decisions made by the Federal Open Market Committee.

    However, Brenard was keen to continue monetary easing until the labor market returned to normal.

    “There is no reason why employment should not be stronger or stronger than it was before the pandemic,” she said in September.

    Bank regulation

    Our two contestants were clearly different in how they regulated large banks.

    According to Yahoo Finance, Brainard voted against some of the Powell-era rollbacks in banking rules.

    “We are worried that we may be undermining the core resilience of our financial system,” she said.

    According to Yahoo, Mr. Brenard “opposed a coordinated approach to the bank’s liquidity requirements and did not advocate a temporary increase in the bank’s capital requirements prior to the pandemic.”


    The trendy topic is how the world’s central banks intend to regulate cryptocurrencies. There is even talk of creating your own Federal Reserve coins among the Federal Reserve brass.

    Hey, that is, China has already done that, why not the United States? Am i right?

    At this point. Powell takes a non-commitment approach to ideas and wants to study them more. Brainard seems more open to this idea, given her past remarks.

    Now that President Biden has announced his decision, Lael Brainard is expected to become Vice-Chairman of the Federal Reserve Board … but as always, the big dog remains Jerome Powell.

    Biden Nominates Jerome Powell To Remain As Fed Chairman Source link Biden Nominates Jerome Powell To Remain As Fed Chairman

    The post Biden Nominates Jerome Powell To Remain As Fed Chairman appeared first on California News Times.

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