Brainard considered for White House economic role, other contenders in mix, Fed shake-up likely.
Lael Brainard is being considered to replace Brian Deese as the head of the National Economic Council in the Biden administration. Brainard has held the second-in-command position at the Federal Reserve since 2021 and is known for advocating a prudent approach to tightening monetary policy. She has also pushed for more stringent regulation of the nation’s biggest banks and for the central bank to more directly incorporate climate-related risks into its oversight responsibilities. Other contenders for the role include Gene Sperling, Bharat Ramamurti, and Sylvia Mathews Burwell.
If Brainard is chosen for the role, it would leave a top leadership position at the Fed vacant as it grapples with inflation and how much more to raise its policy rate. Having lifted the federal funds rate more than 4 percentage points since March, officials are preparing to revert to more usual quarter-point increments at their upcoming policy meeting next week. Brainard was also considered a leading contender for the top job at the Fed and Treasury secretary ahead of her nomination to the vice-chair position in November 2021.
If Brainard replaces Deese, the Biden administration will need to nominate another vice-chair, having already dramatically reshaped the top ranks of the central bank. In addition to renominating Jay Powell as chair, the White House elevated economists Lisa Cook and Philip Jefferson as governors together with Michael Barr as vice-chair for supervision. Biden’s initial pick for the supervisory role, Sarah Bloom Raskin, was blocked by lawmakers.
The Biden administration is considering Lael Brainard to replace Brian Deese as the head of the National Economic Council. Brainard has been second-in-command at the Federal Reserve since 2021 and is known for advocating a prudent approach to tightening monetary policy. If chosen, her departure would leave a top leadership position at the Fed vacant as it grapples with inflation and how much more to raise its policy rate. Other contenders for the role include Gene Sperling, Bharat Ramamurti, and Sylvia Mathews Burwell. If Brainard replaces Deese, the Biden administration will need to nominate another vice-chair, having already dramatically reshaped the top ranks of the central bank.
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