Biden To Decide Whether To Keep Fed Reserve Chair Appointed by Trump

President Joe Biden faces a big decision during a crucial time of post-pandemic economic recovery: whether to reappoint Federal Reserve Chairman Jerome Powell.

Powell’s four-year term expires in early 2022, and though he has received broad bipartisan support, the President could decide to remove him from his post and appoint someone new, effectively eliminating someone who was appointed by his predecessor, Donald Trump.

While Biden has not made any indication of the decision he plans to make, a Reuters poll this week found that a majority of economists believe Biden would choose the status quo and keep Powell in his post.

36 out of 40 economists polled felt Powell would remain in his post, even though he does have some competition for the role.

“Powell does have some strong competition, in particular from Lael Brainard, one of his colleagues as governor. She's the second most likely, but Powell is the favorite right now," James Sweeney, chief economist at Credit Suisse, told Reuters.

Any changes to the Federal Reserve could impact the market and Biden will have to carefully evaluate how his changes will impact a recovering economy that still faces high inflation and low employment activity from the COVID-19 pandemic.

James McCann, deputy chief economist at Aberdeen Standard Investments, told NBC News that Biden has an opportunity to reshape how the Fed board leans in terms of policy.

“He has the potential for a real shakeup of the Fed board,” McCann said.