Current Federal Reserve Governor Jerome Powell is likely to defend his post in February. He has received the nomination of US President Biden and Congress is likely to confirm him as head of the central bank.
The US stock markets welcomed the re-nomination of Jermoe Powell for another four years to head the US central bank. The New York Stock Exchange indices reacted with growth after the announcement of Powell’s nomination by President Joe Biden, although they ended (except for the Dow Jones Industrial Average) slightly in red territory at the end of trading.
In addition, US President Joe Biden nominated Lael Brainard, who has sat on the Fed’s Board of Governors since 2014, for the seat of Fed Vice Governor. According to analysts, the Powell-Brainard duo is a guarantee that the Federal Reserve’s monetary policy will continue on its established trend and will not be the source of surprise decisions that would destabilise the US economic recovery.
This is despite the fact that there are already voices from the Fed’s side that its policy will gradually tighten. But the important thing is that this will be a gradual process, and even when the base rate “bounces” off zero, it will not be a meteoric rise under Powell’s leadership.
