(Washington) Joe Biden assured Monday that Jerome Powell, whom he has just re-appointed as head of the American central bank (Fed), was “the right person” to support the economic recovery of the United States, without letting the economy flare up. ‘inflation.
“Jay (Jerome) is the right person to guide us and continue this effort,” said the US president in a speech, referring to the rebound in the economy and jobs, put to the ground last year by the COVID-19 pandemic.
He was speaking from the White House, alongside Jerome Powell but also Lael Brainard, the institution’s only Democratic governor, who will become vice-president.
Joe Biden also praised the “independence” of the boss of the most powerful world bank and the fact that his support comes from “the entire political spectrum”.
Jerome Powell had been appointed by former Republican President Donald Trump and some elected members of the Democratic camp were calling for a change.
The American president has therefore made the choice of stability and consensus, at a time when the United States is facing a surge in inflation.
He also put all the odds on his side so that the Senate, where the Democrats have only a very thin majority, validate his choice.
But Joe Biden, however, gave a pledge to the progressive camp, believing that in addition to worrying about employment and inflation, the Fed had to be “leader” in taking climate change into account.
This is a long-standing request from some Democrats.
Jerome Powell, in a short intervention, detailed his roadmap as follows: “We will use our tools both to support the economy and the strength of the labor market, and to prevent high inflation from taking hold. ”
Its mission promises to be ultra-delicate because by acting against rising prices, the Fed risks halting an economic recovery that is certainly vigorous but which has not yet produced all its effects on the employment front.
Joe Biden also stressed that he still had other positions to fill on the board of governors of the Fed, the governing body of the central bank.
“Where Jay and Lael bring continuity and stability to the Fed, my other choices will bring new perspectives and new voices,” promised the US president.