Joe Biden is poised to decide whether to reappoint Jay Powell to a second term as Federal Reserve chair — or replace him — after weeks of uncertainty within his own Democratic party.
The US president is cutting it fine: with Powell’s tenure as head of the US central bank ending in February and Biden’s choice still needing to be confirmed by the Senate, investors are getting nervous.
This year the process has been particularly fraught, amid spiralling inflationary pressures and a trading scandal that has pummelled the Fed’s reputation since September.
Some Democrats are pushing to retain the experienced Powell, while others such as Massachusetts senator Elizabeth Warren — who has called him a “dangerous man” over his laissez-faire position on financial regulation — are pushing for a switch. Fed governor Lael Brainard has emerged as the leading alternative.
While this year’s drama has been unusual, the selection of a…