Biden to Appoint Lael Brainard as Top Economic Policy Advisor
As the 2024 elections approach, United States President Joe Biden is anticipated to name Federal Reserve Vice Chair Lael Brainard as his primary economic policy advisor. This move comes as the Federal Reserve is facing extensive challenges in its efforts to lower inflation rates. Brainard, a seasoned expert in fiscal and monetary affairs, will replace White House National Economic Council Director Brian Deese, who has announced his resignation.
Overhaul of Biden’s Economic Team
Biden’s overhaul of his top economic team comes as the Federal Reserve tries to manage inflation rates without causing a recession. Inflation rates, by the Federal Reserve’s preferred measure, are currently more than twice its 2% target rate. The next National Economic Council Director and Council of Economic Advisers Chair will help shape the Democratic Biden administration’s economic policy.
Brainard’s Background and Expertise
Brainard, a Democrat with a PhD in economics from Harvard, has been a prominent figure in the Federal Reserve. She has extended her influence across monetary policy and financial regulation and is known for her meticulous preparation and expertise in global economics. Her move to the White House means a key role at the central bank will remain unfilled for months, at an especially challenging time.
Brainard vs Powell
While Biden has decided to renominate Fed Chair Jerome Powell, a Republican, to the top position, he has also elevated Brainard to the number two slot. Brainard, a PhD economist, provides a counterweight on monetary policy and regulation, whereas Powell is an investment banker and lawyer by training. Brainard has been a bane for Wall Street, pushing for more actions on climate change risks and being the most high-profile supporter of a central bank digital currency. Her views have often pitted her against Powell and other senior colleagues.