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- CBDC advocate Jerome Powell have been nominated by the US President to serve another four years term
- The Biden administration has chosen the current FED board member Lael Brainard to be the vice-chair of the agency
- Biden aimed to announce his picks for those positions with a focus on enhancing the diversity in the Board’s composition
CBDC or central bank digital currency are being researched by almost every nation globally. Many governments of different nations believe that national digital currency would be beneficial for their economy. Simultaneously, the United States Federal Reserve (FED) was also working proactively to issue its CBDC. As Jerome Powell was the FED chair, he underscored that the agency was working proactively to issue a national digital currency. However, it is also noteworthy that unlike other nations who imposed an outright ban on cryptocurrencies like Bitcoin and Ethereum, Jerome was not supporting a blanket ban on crypto.
Jerome Powell will serve another four year
On Monday, an announcement from the United States White House stated that President Joe Biden will be nominating Jerome Powell as his pick to lead the US FED. Hence, the US president has tapped Powell to serve as the chair of the Federal Reserve System’s Board of Governors for another four-years term once his current term ends in February.
Following the announcement, the executive branch highlighted Powell’s decisive action in lessening the economic impact brought on by the global COVID-19 pandemic. Such actions include the creation of more than 5.6 million jobs, and a 4.6% unemployment rate.
Lael Brainard will be the vice chair of FED
In addition to Jerome Powell’s nomination it is also noted that the Biden administration has chosen the current FED board member Lael Brainard to be the vice-chair of the agency. Lael had a 14 year term as a member of the FED which will expire in 2026 while the chair’s term will end in 2028.
However, the US President cited that he is confident that Chair Powell and Dr. Brainard’s will focus on keeping inflation low, prices stable, and delivering full employment. Hence, they would be able to make the US economy more robust than ever before. Moreover, Biden also mentioned that they also share his deep belief that urgent action is needed to address the economic risks caused by climate change, and stay ahead of the emerging risks in the nation’s financial infrastructure.
Monday’s pick represented a slight change
It is expected that seven members will sit on the Board of Governors of the Federal Reserve System. Notably each of them will be nominated by the current US President and confirmed by the Senate. Indeed, all of them are expected to be serving for a 14-years term.
It is also known that although Powell would be serving only four years as the FED chair if confirmed, he would still attend a confirmation hearing of the Senate Banking Committee before his nomination could be voted in the assembly.
Following the nominations it seems like Monday’s pick represented only a slight change, as Biden tapped current vice-chair Richard Clarida to continue his duties from the beginning of next year. According to the White House, Biden aimed to announce his picks for those positions with a focus on enhancing the diversity in the Board’s composition.
Powell’s continuation could bring CBDC
When Jerome Powell first took the position as the Federal Reserve Chair, he was vocal on the role of crypto assets in the United States markets, as the industry grew in size and popularity. Later in September the FED chair highlighted that FED was working proactively to issue a central bank digital currency. Besides, he also underscored that he is unlikely to support a blanket ban on digital assets like BTC and ETH.
