Significant changes in the leadership of the U.S. Federal Reserve in the coming months are causing uncertainties among investors, according to Bloomberg.
- The terms of at least three officials are coming to their end — Chair Jerome Powell in February 2022, Vice Chair Richard Clarida this month, and Vice Chair Randal Quarles in October this year.
- President Joe Biden is being urged to promote diversity in the seven-person Board, currently made up of all White individuals with only two women, and one vacancy.
- Among the possible candidates to take up the posts to be vacated is Lael Brainard, the only Democrat currently on the Board.
- Biden is set to announce his decision in the coming months, but there has yet to be no indication that a choice is near.
- An economist noted that the choice for the next Fed really matters, as this would dictate the direction whether to follow Powell’s policies or change them.
- Another analyst said that with a fork in the road, Biden could choose to reappoint Powell to ensure continuity, or appoint a successor for a shift in priorities such as banking regulation and payments.