United States President Joe Biden, payroll Jerome powell for a second four-year term at the helm of the Federal Reserve, the White House announced today in a statement.
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The Democratic president also nominated the Fed governor, Lael Brainard, to occupy the vice-presidency of the central bank, said the White House.
“We need to better rebuild our economy, and I’m sure President Powell and Lael Brainard focus on keeping inflation low and stable prices, as well as achieving full employment, which will make our economy stronger than ever, “Biden said.
WHO IS POWELL
Jerome Powell thanked the nomination, which he described as extraordinary opportunity, and pledged to do “everything” he can to meet the goals that the US Congress assigned to the Fed.
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“We know that high inflation affects families, especially those least able to cope with the high costs of basic necessities such as food, accommodation and transportation. We will use our tools both to support the economy and the labor market as well as to prevent high inflation from taking hold“, said.
And he pledged to remain “vigilant” in the face of risks to the stability and resilience of the financial system, including the risks of cyberattacks and climate change.
Jerome Powell of 68 years old, took over as Fed chairman in February 2018 for a four-year term, so his initial term will end in February 2022. Is lawyer graduated from Georgetown University and was a partner in the firm of private equity The Carlyle Group.
He also worked at the US Treasury under the presidency of George Herbert Walker Bush in the 1990s, where he assumes responsibilities related to financial institutions or the Treasury debt market.
While Lael Brainard, 59, assumed office as a member of the Board of Governors of the Federal Reserve System in June 2014. Prior to his appointment, She was undersecretary of the US Department of the Treasury between 2010 and 2013, in addition to Counselor to the Secretary of the Treasury in 2009.
How the markets reacted
Powell’s nomination was welcomed by investors who expected no major changes at the central bank, as he guided the economy through a post-COVID recovery.
The S&P 500 and Nasdaq indices hit record highs today after the news broke. Major Wall Street banks rose 1.5-3%, following a jump in Treasury bond returns as investors predicted a tightening of the Fed’s monetary policy for the first half of 2022. Wells Fargo & Co led earnings among its peers.
Shelter sectors, including real estate and health care, performed the worst, with a decline of about 0.6%.
The Dow Jones Industrial Average rose 238.50 points, or 0.67%, to 35,840.48 units, while the S&P 500 gained 33.62 points, or 0.72%, to 4,731.58 units. The Nasdaq Composite added 105.57 points, or 0.66%, to 16,163.01 units.
The Nasdaq hit a second consecutive record as demand for tech stocks remained strong. Heavyweights, including Amazon, Apple and Meta Platforms, go up between 0.1% and 2%.
The tech sector outperformed its peers last week, helping the Nasdaq close above the 16,000 level for the first time, as concerns about rising COVID-19 cases in Europe fueled demand. refuge.
Travel and energy stocks, which were among the worst performers last week, also rose in the session.