Biden renominates Powell for second term as Fed Chair

• Biden put forth Fed Governor Lael Brainard as vice chairman of the board of governors of the Federal Reserve System

• The progressives favored Fed Governor Lael Brainard for spearheading Fed work on climate-related risk.

U.S. President Joe Biden nominated Jerome Powell for a second term as chairman of the U.S. central bank and put forth Fed Governor Lael Brainard as vice chairman of the board of governors of the Federal Reserve System.

The renomination of Fed Chair Jerome Powell for a second term signifies the government’s approval of Powell’s role in making decisions to support the nation’s economy through the COVID-19 recession by implementing monetary stimulus.

Doubt had flooded the minds of many on whether or not Biden would want to replace Powell. The progressives favored Fed Governor Lael Brainard for spearheading Fed work on climate-related risk. In the days leading up to the announcement, Brainard had also reportedly visited with the White House as she too had been considered for the same position.

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President Biden appreciated Powell’s role in taking the reins of the economy. “America needs steady, independent, and effective leadership at the Federal Reserve so it can advance its dual goals of keeping inflation low and prices stable, as well as creating a strong labor market that broadly benefits workers with better jobs and higher wages," said a White House statement announcing Powell's nomination.

“President Biden has full confidence in Powell and Brainard’s experience, judgment, and integrity to continue delivering on those mandates and to help build our economy back better for working families," mentioned the document.4

Meanwhile. Back in early September Five House Democrats, including Rep. Alexandria Ocasio-Cortez of New York, called for President Joe Biden to replace Federal Reserve Chairman Jerome Powell when his term expires in February.  The lead contender to replace Jerome Powell as the Federal Reserve Chair, was Lael Brainard.

READ MORE: Five democrats call for climate risk elimination, demand the replacement of Fed Chair Powell

(With inputs from CNBC)

Picture Credits - Bloomberg/Getty Images