Biden May Nominate Fed Chair Right After COP26... Bloomberg Says "It's Already Quite Late"

Biden States at COP26 Press Conference, "Will Nominate Fairly and Quickly"
Bloomberg: "Even Trump, Exceptionally Late in 2017, Nominated Powell on November 2"

President Joe Biden of the United States [Photo by AP Yonhap News]

[Asia Economy Reporter Park Byung-hee] U.S. President Joe Biden is expected to announce the next Federal Reserve (Fed) Chair soon after returning to the White House from the 26th United Nations Climate Change Conference of the Parties (COP26) currently being held in Glasgow, Scotland.

On the 2nd (local time), during a COP26 press conference, President Biden said, "I will announce the next Federal Reserve (Fed) Chair fairly and quickly," Bloomberg News reported that day. The nomination of the Fed Chair is unrelated to COP26. The fact that President Biden made a statement on this matter shows how important the Fed Chair nomination is.

Bloomberg pointed out that previous presidents had already nominated the Fed Chair by this point, indicating that Biden's nomination is considerably late. The only exception was former President Donald Trump, who nominated the current Fed Chair Jerome Powell on November 2, 2017. Since President Biden does not plan to return to the White House until the 3rd, his nomination will be even later than Trump's exceptionally late nomination.

Former President George W. Bush nominated former Fed Chair Ben Bernanke on October 25, 2005. His successor, former President Barack Obama, announced Bernanke's reappointment early on August 25, 2009. Obama's nomination of Bernanke's successor in 2013 was also early, on October 9. If former Treasury Secretary Larry Summers, initially considered by Obama, had not withdrawn his candidacy, the nomination would have been even earlier.

Jerome Powell's current term as Fed Chair, nominated by Trump, expires in February next year. While President Biden has said he will decide quickly, he has also indicated there is still ample time.

Jerome Powell, Fed Chair
Photo by AFP Yonhap News

So far, analysis suggests that Powell's reappointment is the most likely outcome.

In a Bloomberg survey conducted from the 22nd to the 27th of last month targeting economists, 79% expected Powell to be reappointed. Bloomberg explained that although Powell's reappointment remains highly likely, the recent controversy over stock trading by senior Fed officials has slightly lowered the percentage of respondents expecting Powell's reappointment compared to previous surveys.

Rael Brainard, a current Fed Board member, was expected to be nominated as the new Chair by 13%. Brainard is currently the only Democrat on the Fed Board.

Next, 4% named Roger Ferguson, former CEO of the Teachers Insurance and Annuity Association (TIAA), and 2% named Raphael Bostic, current President of the Atlanta Fed.

Bostic's consideration as a Fed Chair candidate is interpreted as being due to his status as an African American. Except for current Treasury Secretary Janet Yellen, who was Powell's predecessor, all previous Fed Chairs have been white males. Amid growing demands for greater gender and racial diversity at the Fed, Bostic is being mentioned as a candidate. Bostic became President of the Atlanta Fed in 2017, marking the first time in the Fed's 104-year history that an African American became a regional Fed President.

Meanwhile, with the term of Randall Quarles, Vice Chair for Supervision, expiring on the 13th, one Vice Chair position has become vacant.

White House aides are reportedly advising President Biden to reappoint Powell as Chair and promote Brainard to Vice Chair to oversee Wall Street banks. Treasury Secretary Yellen is also advising President Biden to reappoint Powell.

So far, Senator Elizabeth Warren is the only Democrat who has officially expressed opposition to Powell's reappointment.

This content was produced with the assistance of AI translation services.