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Powell will be nominated by Biden for a second term as Fed chairman.

President Joe Biden of the United States announced on Monday that he intends to nominate Jerome Powell for a second term as chairman of the Federal Reserve and Lael Brainard as vice-chair.

“Chair Powell has provided steady leadership during an unprecedentedly difficult period, including the worst economic downturn in modern history and attacks on the Federal Reserve’s independence,” the White House said in a statement.

The Republican Fed chair, whose four-year term ends in February, is backed by Republican lawmakers and Treasury Secretary Janet Yellen but has faced criticism and opposition from some progressive Democrats over controversial stock trading by Fed officials during the pandemic and Fed policies.

Powell “has taken too many actions to weaken the Fed’s oversight of our largest banks and deregulate Wall Street,” according to Democratic Senator Elizabeth Warren, who also opposed Powell’s nomination in 2018.

Lael Brainard, a member of the Federal Reserve Board, has previously been proposed as Powell’s successor by progressives.

Despite their disagreements with Powell on inflation and other issues, Republican senators are concerned that a replacement will be more liberal, and will likely vote to confirm Powell for a second term.

Powell was appointed chairman of the Federal Reserve Board of Governors in February 2018 for a four-year term, according to a White House statement. On January 31, 2028, his term as a member of the Board of Governors will come to an end.

According to the statement, Brainard was appointed to the Federal Reserve Board of Governors in June 2014 to fill an unexpired term that ends on January 31, 2026.

“I’m confident that Chair Powell and Dr. Brainard’s focus on low inflation, stable prices, and full employment will make our economy stronger than it has ever been,” Biden said in a statement. “They also share my deep belief that immediate action is required to address the economic risks posed by climate change and to stay ahead of emerging financial system risks.”

“Fundamentally, if we want to build on this year’s economic success, we need stability and independence at the Federal Reserve – and I have full confidence in Chair Powell and Dr. Brainard after their trial by fire over the last 20 months that they will provide the strong leadership our country requires,” he said.

Federal Reserve Governor Randal Quarles announced earlier this month that he would resign from the central bank at the end of December, leaving three open seats on the central bank’s seven-member Board of Governors for the Biden administration.

Richard Clarida’s term as governor of the Federal Reserve expires early next year.

The central bank’s 12-regional bank presidents, five of whom can vote on policy meetings, set interest rate policy with the central bank’s seven-member Board of Governors. The presidents of regional banks rotate through their voting positions, but the New York Fed has a permanent vote.

Two Fed regional bank presidents, Eric Rosengren of the Boston Federal Reserve Bank and Robert Kaplan of the Dallas Federal Reserve Bank, resigned in September amid a controversy over stock trading during the COVID-19 crisis.

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