Home » News » United States: Jerome Powell appointed to retain Fed presidency – 11/22/2021 at 3:46 pm

United States: Jerome Powell appointed to retain Fed presidency – 11/22/2021 at 3:46 pm

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UNITED STATES: JEROME POWELL DESIGNATED TO KEEP THE PRESIDENCY OF THE FED

WASHINGTON (Reuters) – Jerome Powell was chosen on Monday by US President Joe Biden for four more years as President of the Federal Reserve (Fed), after a first term marked by repeated criticism of the former tenant of the House white Donald Trump and by the economic shock associated with the COVID-19 pandemic.

Lael Brainard, a member of the Fed’s monetary policy committee (FOMC), has also been appointed vice-president of the US central bank, the White House said.

“While there is still much to do, we have made remarkable progress over the past ten months to get Americans back to work and get our economy going,” Joe Biden said in comments emailed to reporters.

“This success is testament to the economic program that I have implemented and the determined action taken by the Federal Reserve,” added the Democratic President.

The renewal of Jerome Powell, 68 years old and from the Republican camp, will have to be approved by the Senate, narrowly controlled by the Democrats.

In financial markets, the dollar and US bond yields rose after the announcement of the appointment of Jerome Powell for a new term.

The dollar index, measuring the evolution of the greenback against a basket of benchmark currencies, rose 0.39% at 2:30 p.m. GMT, the highest since July 2020.

The two-year U.S. government bond yield rose more than six basis points to 0.5659%, its highest level since March 2020.

On Wall Street, the main equity indices opened up 0.3% to 0.5%.

“Biden’s appointment of Powell for a second term as Fed chairman is news that favors market players because they like the idea of ​​continuity,” said Naeem Aslam, head of market analysis at Avatrade.

(Report by Jeff Mason and Howard Schneider, Blandine Hénault for the French version, edited by Bertrand Boucey)

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