Biden Faces Tough Choice on Fed Pick

“President Joe Biden has a tough decision in choosing the next Federal Reserve chair: Play it safe by giving Jerome Powell a second term or take a chance on a liberal like Lael Brainard, who would please progressives in Congress yet potentially agitate Wall Street,” Bloomberg reports.

“Either path offers speed bumps for the White House. Powell would likely sail to Senate confirmation, giving the Biden administration a significant bipartisan win. Financial markets would likely remain calm, but Biden would likely disappoint some progressive Democrats he needs for other issues.”

“A liberal nominee, like Fed Governor Brainard, who hews more closely to Biden’s economic agenda and is far more of a hawk on banking regulations, would likely keep Democratic senators like Elizabeth Warren and Banking Chair Sherrod Brown happy. Yet it would presage a bruising confirmation fight, potentially even a 50-50 vote with Vice President Kamala Harris the tie-breaker.”