Biden letting Fed chair pick drag out
President Biden is late in announcing his decision for the next chairman of the Federal Reserve, according to data and analysis by the Atlantic Council.
Why it matters: Presidents typically give markets — and the Senate — much more time to digest such monumental financial news, especially during a time of economic turmoil.
- Senators also have the important job of confirming the nominee.
By the numbers: With the international economy still reeling from the global financial crisis in the summer of 2009, President Obama announced a second term for Ben Bernanke some 162 days before his term expired.
- Twelve years later — with the world now battling COVID-19 and struggling with supply chain disruptions — Biden is poised to give markets fewer than 80 days to process a potential Powell reappointment.
- If Biden decides against renominating Jerome Powell and opt for another potential choice, Lael Brainard, her nomination would be much later than the previous three nominees.
- Brainard, however, would be in some good company: Markets only got a 69-day warning from President Ronald Reagan before he named Alan Greenspan to the first of his five terms.