Biden to appoint Fed vice-chairman as his top economic adviser

Earlier it was reported that the head of the White House National Economic Council (NEC), Brian Deese, would leave his post and plan to return to work at Princeton University. Chairman Brainard’s choice to replace outgoing NEC chief Brian Deese puts her alongside another former senior Fed official, Treasury Secretary Janet Yellen, key economic policy players in the administration as inflation continues to be fought and Biden is preparing for a possible re-election campaign, analysts say.

Additionally, Jared Bernstein, a member of the White House Council of Economic Advisers, is expected to be named chairman, replacing Cecilia Rose, who is resigning, sources said. They will play a prominent role in the White House as the US administration will soon be forced to focus on implementing a number of laws, including the Inflation Reduction Act, passed in the first two years. of the Biden presidency.

Brainard’s move to the White House also presents an opportunity for the Fed, whose leadership is grappling with when to stop the most aggressive rate hike in four decades. Brainard is considered one of the more moderate members of the Fed. While the US central bank was unanimous in its determination to raise interest rates quickly to fight inflation, it recently indicated that this objective could be achieved without too much damage to employment.

It is unclear who Biden will appoint to take his place at the Fed and when he will make that decision.

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