[ad_1]
Leuthold Group Chief Investment Strategist Jim Paulsen, Chief Markets Strategist, Advisory Group Phil Blancato and Kaltbaum Capital Management Chairman Gary Kaltbaum on Federal Reserve and Economic and Market Trends.
The White House is still considering the potential re-appointment of Jerome Powell as president of the Federal Reserve, one of the most important economic decisions for President Biden during his first term.
Powell’s term officially ends in February 2022, but the White House previously said it would make a decision before Labor Day. Press secretary Jen Psaki said Biden will make the decision with enough time to ensure the Senate can confirm the individual.
YELLEN APPROVES POWELL FOR A SECOND TERM, INCREASING ITS CHANCES OF RENOMINATION
“The president will engage with his senior economics team in a prudent and thoughtful process to appoint a timely Federal Reserve chairman, “a White House official told FOX Business.
Powell, a lawyer by training and former Republican Treasury official, is generally respected on Wall Street and liked by lawmakers on both sides. Fed chairmen – one of Washington’s most powerful players, with the ability to dictate the pace of economic growth – are usually appointed for a second term, often to strengthen the central bank’s independence from -vis of the policy.
In 2018, Powell replaced Janet Yellen at the helm of the Fed, making her the first president not to be re-elected after a first full term.
Biden faces pressure from progressive lawmakers, including Rep. Alexandria Ocasio-Cortez, DN.Y., and other members of “Squad” to replace Powell with someone “focused on elimination climate risks and the promotion of racial and economic justice “.
At the same time, Powell is said to have secured a key endorsement from Yellen, now Secretary of the Treasury, increasing his chances of a second term, given his nearly two decades of experience at the Fed, including four years as head of the central bank. Yellen also worked directly with Powell, who served as Fed governor during his tenure.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
The White House move comes as Fed policymakers wonder how to start rolling out some of the super-easy monetary policies put in place to support the U.S. economy during the pandemic. It’s a tough needle to thread, with Fed officials trying to strike a delicate balance between soaring inflation and the still recovering labor market.
Fed policymakers pledged in July to keep the benchmark fed funds rate within a range of 0% to 0.25%, where it has been since March 2020, and to continue buying $ 120 billion of ‘bonds every month, a policy known as “quantitative easing” which is designed to keep credit cheap.
Although Powell indicated at the Fed’s annual symposium in Jackson Hole that he supported reducing monthly asset purchases this year, that was before a lackluster employment report in August raised further concerns. as to the slowdown in the economic recovery.
The Fed is holding a two-day meeting this week and will issue an announcement on Wednesday afternoon. This will be followed by a media briefing with Powell.
Edward Lawrence of FOX Business contributed to this report
[ad_2]
Source link