Janet Yellen to Back Jerome Powell Reappointment for Fed Chair
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U.S. Treasury Secretary Janet Yellen has told senior White House advisers that she supports reappointing Jerome Powell as Federal Reserve chair, according to people familiar with the matter.
President Joe Biden hasn’t yet made a decision, the people said, adding that he’s likely to do so around Labor Day.
Powell was elevated to Fed chair by President Donald Trump in 2018, replacing Yellen. The chair serves a four-year term.
Officials at the White House and the Treasury declined to comment.
The White House has been looking more widely for possible candidates for the position, according to people familiar with the matter. A team of advisers has been examining the public speeches and comments of candidates to consider, paying special attention to views on the labor market, they said.
Uncertainty over the economic impact of the delta variant virus may trigger more caution about changing leadership at the Fed in the midst of a crisis, two of the people said. The next several months may prove tricky for the Fed with the coronavirus casting more uncertainty over the pace of the economic recovery, including the path of monetary policy.
Yellen’s backing gives Powell an enormous boost: Her almost two decades of experience at the central bank, including four years at its helm, make her counsel valuable.
For Powell and his backers, including Republican lawmakers and many on Wall Street who view him as a safe pair of hands, a signal of support from Yellen comes at an important time. Powell will deliver a much-anticipated speech on Friday at the Kansas City Fed’s annual Jackson Hole symposium, possibly signaling when and how the central bank is likely to begin withdrawing some of its extraordinary support for the economy.
While interest rates are expected to remain near zero at least well into next year, several Fed officials have signaled their eagerness to begin reducing the size of monthly bond purchases this year. Powell has promised not to surprise markets with that eventual move.
(Updates with White House selection criteria in fifth paragraph.)
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