Lael Brainard, Vice Chairman of the US Federal Reserve, speaks at the Urban Institute panel discussion in Washington, DC, USA, Friday, June 3, 2022.
Ting Shen | Bloomberg | Bloomberg | Getty Images
The White House appointed Federal Reserve Vice Chairman Lael Brainard to chair the National Economic Council and Jared Bernstein to chair the Economic Advisory Board. These two play an important role in shaping US economic policy as the country grapples with persistently high inflation.
The announcement is the latest in a series of personnel changes within the administration after the midterm elections and midway through his term, as Mr. Biden began to look to the possibility of re-election. In recent weeks, Jeff Zientz has replaced Ron Crane as White House Chief of Staff. Current NEC director Brian Deese announced on Friday that he is stepping down. White House communications director Kate Bedingfield said he plans to leave at the end of the month.
“Cecilia Rouse and Brian Deeds have been trusted advisors and relied on in shaping my economic policy, and our country is grateful for their contributions,” Biden said in a statement. “As they move out of the White House, I am pleased to announce a new leader who will continue to deliver on my economic vision and help me get the job done.”
CNBC reported earlier this month that Brainerd and Bernstein were being considered as candidates, with Brainerd being the frontrunner for the job in January.
The pair will have a tremendous impact on economic policy during a difficult time for the United States. The unemployment rate is at its near-54-year low and GDP data shows strong growth, but the data contrasts with the highest inflation in 40 years and aggressive interest rate hikes to keep consumer prices in check. has becomeThe Federal Reserve is 8 price increases It raised the benchmark interest rate from virtually zero a year ago to the target range of 4.5% to 4.75%, the highest level since October 2007.
In a statement announcing the decision, Biden called Brainerd “one of the country’s leading macroeconomists.”
“She is a trusted veteran across our economic institutions and understands how the economy affects people on a daily basis.
Brainard will help lead Biden’s negotiations with House Republicans in what is expected to be a contentious and tricky battle over raising the US debt ceiling later this year. He drew a hard line on the issue, saying he would not negotiate any fundraising moves.
Brainard is emerging as a candidate for Treasury secretary or to replace Federal Reserve Chairman Jerome Powell. She currently serves as Powell’s Vice Chair. Her appointment will help mend ties between the West Wing and the Treasury Department, which have been at odds over policy at times, according to people familiar with the matter. I worked for 3 years. She also served as Undersecretary of Finance from 2009 until 2013 when she served as Deputy Secretary of NEC.
Yellen has said she intends to remain in the Treasury until the end of Biden’s term.
Brainerd is known to be a harsh critic of Wall Street, opposing proposals to lift restrictions created in the wake of the Great Recession. She also spoke about the impact of climate change on the financial sector. As a director of NEC, Mr. Brainard is charged with formulating the president’s economic policy and coordinating economic responses among various agencies.
NEC’s board position is seen as a stepping stone to other top cabinet roles.Robert Rubin, who ran NEC from 1993 to 1995, was later appointed Secretary of the Treasury by then-President Bill Clinton. it was done. Larry Summers, Rubin’s replacement at the Treasury Department, took the opposite route, returning to government in 2009 to run the National Economic Council for former President Barack Obama.
Bernstein, a former social worker and longtime Biden supporter who served as chief economist and economic adviser during the Obama administration, is now a member of the board of directors he leads.
“Jared is a great thinker and one of my closest and longest-serving economic advisers,” Biden said. , which has long been central to my economic vision.”
Bernstein’s position requires Senate confirmation, which is not expected to be difficult given the Democrats’ 51-seat majority.
