Biden nominates Powell to lead Fed for 2nd term

By Ovunc Kutlu

ANKARA (AA) - US President Joe Biden nominated the Federal Reserve (Fed) Chair Jerome Powell to lead the central bank for a second term, White House said on Monday.

Leading the Fed since February 2018 for a four-year term, Powell has tried to navigate the bank through the coronavirus-caused recession by providing trillions of dollars of stimulus during the crisis and by lowering interest rates to almost zero.

He has been criticized for keeping rates too low against the record-high US inflation seen in the last three decades.

"While our country still faces challenges as we emerge from the pandemic, we have made enormous progress in bringing our economy back to life and getting Americans back to work," the White House said in a statement.

"Chair Powell has provided steady leadership during an unprecedently challenging period, including the biggest economic downturn in modern history and attacks on the independence of the Federal Reserve," it added.

Biden, in addition, nominated Lael Brainard to serve as Vice Chair of the Board of Governors of the Federal Reserve System.

Before becoming a member of the Board of Governors in June 2014, Brainard served as undersecretary of the Department of Treasury from 2010 to 2013.

Biden said he is confident Powell and Brainard will focus on keeping inflation low, prices stable, and delivering full employment.

"Together, they also share my deep belief that urgent action is needed to address the economic risks posed by climate change, and stay ahead of emerging risks in our financial system," he said in the statement.

The president still has three vacant seats on the Federal Reserve Board of Governors to fill, which he intends to announce in early December, according to the White House.