Jerome Powell keeps his job at the Fed

The person who helms the Federal Reserve is one of the most powerful figures in the world. Their job is also one of the most impactful on the lives of ordinary Americans, not to mention others across the world.

That will be especially true in the coming months as the Fed seeks to tame soaring prices without jeopardizing the economic recovery. The consequences of getting it wrong could be catastrophic and result in higher inflation, a return to recession or, worse, the Fed might have to deal with stagflation – in which you get both rising prices and a sluggish economy.

Jerome Powell is the current chair of the Fed, but his first term was set to expire in February. Progressive Democrats had been pushing President Joe Biden to replace him with Lael Brainard, a Harvard economist who is currently serving as the only registered Democrat on the board of governors of the Federal Reserve System. Progressives prefer her in part because she appears to be more sympathetic to more financial regulation and Fed action on climate change.

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