Biden to name Fed's Lael Brainard as top economic adviser - source
Reuters
Published Feb 13, 2023 09:22PM ET
Updated Feb 13, 2023 11:01PM ET
(Reuters) -U.S. President Joe Biden is expected to name Federal Reserve Vice Chair Lael Brainard to the White House's top economic policy position as early as Tuesday, a source familiar with the matter said on Monday.
Brainard would replace White House National Economic Council (NEC) Director Brian Deese, who has announced his resignation.
In addition Biden confidant Jared Bernstein is expected to replace Cecilia Rouse as chair of the Council of Economic Advisers, the source said. Rouse has announced plans to depart.
The White House declined to comment.
Bloomberg News first reported the changes.
Markets' response was muted in Asia hours, with bonds and the dollar steady along with U.S. futures, and analysts said the implications of the appointment weren't very clear.
"We don't know what to infer from this," said Vishnu Varathan, head of economics at Mizuho Bank in Singapore.
"Under normal circumstances I would have thought that her advice to Biden would be very pro stimulus," he said.
"(But) the inflation backdrop will probably dampen if not check some of her underlying tendencies...I suspect that a lot of her input may be on the supply side."
Biden is making over his top economic team as the Fed continues to hike interest rates but the U.S. labor market remains tight, raising the prospect of an unusual recession without significant job losses.
The next NEC director and CEA chair will help shape the Democratic Biden administration's economic policy, from executive orders to congressional spending bills and raising the debt limit, in the face of a more hostile U.S. House of Representatives, now controlled by Republicans.
Brainard is a Harvard-educated Democrat who has been at the Fed for nearly a decade and served as Treasury's top international affairs expert under President Barack Obama. She was an economic adviser to then-President Bill Clinton.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.