He also singled out what he called their “deep belief that urgent action is needed to address the economic risks posed by climate change, and stay ahead of emerging risks in our financial system.”
Brainard and Powell have similar views on monetary policy, but differ over bank regulation with Brainard opposing at nearly every step Powell’s modest rollbacks of some of the tough curbs imposed on banks after the financial crisis.
Brainard, 59, was appointed a Fed governor in 2014 by President Barack Obama. In 2020, Biden considered picking her as Treasury Secretary, before he picked Janet Yellen.
A graduate of Harvard University, Brainard served in Bill Clinton’s White House as deputy national economic adviser. In 2009, under Obama, she joined the Treasury and became undersecretary for international affairs in 2010.
Powell’s second term is going to be very different from his first. While the economy is rebounding, inflation is running at a three-decade high, Covid-19 cases remain elevated and strained supply chains present big uncertainties.
Some officials are already suggesting the Fed may need to pull back its massive asset-purchase program faster than now planned and Powell will also be presiding over a committee with a number of members who likely want to raise interest rates sooner than he does.
Powell said this month he won’t consider hiking rates until the labor market shows greater signs of healing.
--With assistance from Steven T. Dennis and Matthew Boesler.
This article was provided by Bloomberg News.