Biden picks Powell as Federal Reserve chair

President Joe Biden has renominated Federal Reserve Chairman Jerome Powell for a second term as the head of the central bank, a sign of the administration’s approval of Powell’s leadership through the COVID-induced economic crisis.

Questions had loomed over whether or not Biden would want to replace Powell. Fed Governor Lael Brainard, a favorite among progressives for spearheading Fed work on climate-related risk, had also been considered by the administration and reportedly visited with the White House in the days leading up to the announcement. Biden has nominated Brainard as vice chair of the Board of Governors of the Federal Reserve System.

"America needs steady, independent, and effective leadership at the Federal Reserve so it can advance its dual goals of keeping inflation low and prices stable, as well as creating a strong labor market that broadly benefits workers with better jobs and higher wages," said a White House statement announcing Powell's nomination. "President Biden has full confidence in Powell and Brainard’s experience, judgment, and integrity to continue delivering on those mandates and to help build our economy back better for working families."

Treasury Secretary Janet Yellen said Powell's renomination will allow the economy to "continue to benefit from his stewardship." Senators on both sides of the aisle applauded the Biden administration for the picks, with Senate Banking Committee Chairman Sherrod Brown (D-Ohio) saying he "look[s] forward to working" with Powell in a second term. The committee's top Republican, Pat Toomey of Pennsylvania, said he will support Powell's confirmation.

Powell will now face the Senate Banking Committee for renomination before facing the full 100-member Senate for approval. Before the Biden administration made its pick, Sen. Elizabeth Warren (D-Mass.) had said she would not support a Powell renomination, citing bank regulatory rollbacks implemented under his chairmanship.

FILE - Chairman of the Federal Reserve Jerome Powell listen during a Senate Banking Committee hearing on Capitol Hill in Washington, Dec. 1, 2020. President Joe Biden announced Monday, Nov. 22, 2021 that he's nominating Jerome Powell for a second term as Federal Reserve chair, endorsing Powell's stewardship of the economy through a brutal pandemic recession in which the Fed's ultra-low rate policies helped bolster confidence and revitalize the job market. (AP Photo/Susan Walsh, Pool, File)
FILE - Chairman of the Federal Reserve Jerome Powell listen during a Senate Banking Committee hearing on Capitol Hill in Washington, Dec. 1, 2020. President Joe Biden announced Monday, Nov. 22, 2021 that he's nominating Jerome Powell for a second term as Federal Reserve chair, endorsing Powell's stewardship of the economy through a brutal pandemic recession in which the Fed's ultra-low rate policies helped bolster confidence and revitalize the job market. (AP Photo/Susan Walsh, Pool, File) · ASSOCIATED PRESS

Opposition could also come from the other side of the aisle, where GOP Sen. Rick Scott of Florida noted that he would not support Powell if the Fed does not act faster to tamp down inflationary pressures.

Still, Powell has had a record of securing bipartisan support through several administrations. A Republican by affiliation, Powell was confirmed to the Fed Board as governor during the Obama administration, securing a 74 to 21 vote in 2012. When Trump tapped Powell to replace Janet Yellen as the head of the Fed, Powell easily won confirmation in an 84 to 13 vote.