In office from 2018, the 69-year-old former banker will remain in the role until 2026. Powell took office after being appointed by then-President Donald Trump, from whom he would be criticized. Last year, current White House leader Joe Biden announced that he intended to keep him in charge of the Fed.
Powell joined the Fed in 2012, when he joined the Fed’s board. Prior to this, he served as the Assistant Secretary of the Treasury Department under George HW Bush. He was also a visiting professor at the Center for Bipartisan Policy, focusing on tax issues.
America’s central bank chief will face the challenge of fighting the highest inflation in the US in four decades.
Last week, the Fed raised the benchmark interest rate by 50 basis points to between 0.75% and 1.00%, indicating further hikes may be necessary.
The entity also disclosed plans to reduce its asset balance by $9 trillion starting in June. It aims to remove the extraordinary monetary accommodation implemented to mitigate the economic effects of the pandemic.
In addition to Powell, Biden also nominated Philip Jefferson and Lisa Cook to the Fed board, as well as made Lyle Brainard vice president. The US legislature has already ratified all three.
The nomination of Michael Barr as Vice President of Surveillance is yet to be voted on. Barr has been appointed to replace Sarah Bloom Ruskin, who has faced resistance from opinions against carbon-intensive industries.
