Powell Stays as Chair, of a Transformed Fed

Source: The American Prospect
by Robert Kuttner

“Biden’s carefully considered decision to reappoint Jay Powell to chair the Fed for four more years, with Lael Brainard elevated to vice chair, was the safer course. Powell will now be confirmed overwhelmingly, and Biden will have a Republican Fed chair firmly committed to resisting the call for a premature hike in interest rates based on a mistaken diagnosis of what is really supply-shock inflation. But the progressive community’s campaign to have Biden replace Powell with Brainard will still bear fruit. Biden has three other Fed seats to fill, and with Powell staying as chair there is now even greater assurance that he will fill the other slots with progressives, who are also likely to be women and people of color.” (11/22/21)