Treasury Secretary Janet Yellen has told top White House advisers that she wants to see Jerome Powell reappointed as chairman of the Federal Reserve.
Yellen's endorsement, according to Bloomberg News, "greatly increases his chance for a second term." President Biden is expected to make his choice sometime around Labor Day. Bloomberg says that "Keeping someone viewed by Wall Street as a trusted policy maker in charge of the world's most powerful central bank would send a signal of continuity as the economy recovers from the pandemic."
Powell's term is set to end in February of next year. He served as a governor at the Fed from 2012, while Yellen was chairman, having been appointed by President Obama. Powell was picked by President Trump in 2018 to follow Yellen as chairman.
"While interest rates are expected to remain near zero at least well into next year, several Fed officials have indicated eagerness to begin reducing the size of monthly bond purchases this year," according to the outlet. "Powell has promised to avoid surprising markets with that eventual move."