Jerome Powell’s Future as U.S. Fed Chair Is Under Review

(Oxford Analytica) — The White House is considering whether to give Federal Reserve (Fed) Chair Jerome Powell, a Trump appointee, a second four-year term. Replacing him would provide an opportunity to refresh Fed policy but recent reports suggest that Powell has the significant support of Treasury Secretary Janet Yellen.

What next

President Joe Biden has appointed a number of tough-minded regulators, notably Lina Khan at the Federal Trade Commission and Gary Gensler at the Securities and Exchange Commission, and this may ease pressure to make a comparable change at the Fed. In addition, uncertainty about inflation trends and a likely slowdown due to the reimposition of Covid restrictions will make markets nervous if Powell is replaced.