Bloomberg reported Saturday that Janet Yellen would support another term for Jerome Powell's Fed chair.
Powell succeeded Yellen to the US central banking head.
Biden is expected to make a decision within the next few days.
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According to a Bloomberg report on Saturday, Janet Yellen, former Chair of Federal Reserve Janet Yellen, will support another term for Jerome Powell's successor as head of the US central banking.
Bloomberg reported that Yellen made these comments to White House senior advisors. Bloomberg cited people familiar with the matter.
Powell's four year term as Fed Chair will expire in the early 2022. According to reports, President Joe Biden will make a decision in the coming days on the matter.
Biden appointed Yellen to the Treasury Secretary post, having appointed her chair of the Fed under President Barack Obama. So, it is possible that she has some influence on the decisions made by Biden.
As the person who oversees the largest and most influential economy in the world, the Fed chair is undoubtedly the highest economic policymaking position. Along with other members of the Federal Open Market Committee, the chair plays an important role in setting interest rates, and conducting asset purchases to provide liquidity to markets.
In early 2018, President Donald Trump appointed Powell to oversee the central bank's policy and operations during the economic chaos caused by the coronavirus pandemic. Powell and the FOMC reduced interest rates to almost zero and began a massive quantitative easing program, in which the country basically buys its own debt. This has allowed the economy and financial markets to rebound.
The central bank is currently deciding when, how much, and how fast they will tighten their monetary policy.
Some insiders and outsiders believe that the Fed should begin to taper asset purchases quickly. Some others are more cautious, not wanting an economic downturn that is self-inflicted. Powell or not, the next Fed chair will face the challenging task of navigating this delicate economic environment.
