President Joe Biden’s announcement on who will head the Federal Reserve is “imminent,” according to Senate Banking Committee Chairman Sherrod Brown.
“I heard it was imminent,” Brown (D., Ohio) told Bloomberg. “I’m not going to speculate who I think it might be right now. I guess the decision was made and they didn’t announce it, but I don’t even know. “
Biden is expected to make his choice before Thanksgiving, even if the tenure of current Fed Chairman Jerome Powell expires in February. Concerns about rising inflation likely accelerated Biden’s timeline for choosing Fed leadership.
“We’ll see,” press secretary Jen Psaki said at a daily briefing when asked if Biden would announce his pick this week. “I don’t have anything to preview for you yet. I understand the interest.
Read more: Who will be the next Fed chairman? Weigh Brainard’s odds against Powell.
Powell’s four-year term expires in February, shortening Biden’s window to select a candidate and put him through the vetting and confirmation process.
“It probably increases the likelihood that Powell will be reconfirmed or that we have a candidate who has already gone through the confirmation process, like Lael Brainard,” said Ed Mills, analyst at Raymond James. “The chances of a generic choice should be low. “
While Powell is the front-runner for the nomination – he enjoys broad bipartisan support – Brainard, the current Fed governor, has become a possible candidate after meeting Biden last week. Either candidate would imply a general continuation of current Fed policy, Mills said.
“We continue to expect President Powell to be reappointed,” Citigroup analysts wrote in a note. “Governor Brainard is the most likely alternative choice in our opinion (and would have been the only other official interviewed by Biden) and would be more accommodating. “
The political betting markets largely echo the prediction, with online betting site PredictIt predicting a 67% chance that Powell will win the nomination and 34% that Brainard will be nominated.
Write to Sabrina Escobar at [email protected]