- Janet Yellen, the former Chair of the Federal Reserve, will be nominated as U.S. Treasury Secretary.
- Lael Brainard, the current Fed governor, is expected to stay at the Fed.
- Both should be acceptable to members of both parties.
According to the media, the incoming administration of President-Elect Joe Biden prefers women to lead the Treasury Department and the Federal Reserve. They hope that Lael Brainard, who serves as the Fed governor, can replace Jerome Powell as the Fed chair.
More than one media outlet also reported that Janet Yellen, the former Chair of the Federal Reserve, will be nominated as U.S. Treasury Secretary.
During the midday hours of US stocks on Monday, some media outlets said that Biden’s assistant told Lael Brainard, the current Fed governor, that she needed to stay at the Fed.
This further reduces the possibility of Brainard being nominated as Treasury Secretary. The media also mentioned that Brainard is among the best candidates for the next Chair of the Federal Reserve.
Another outlet said at the same time that the top advisers of the Biden team on Wall Street revealed that in Biden’s U.S. Treasury Secretary’s selection, Yellen was more likely to be selected than Brainard or former Federal Reserve Governor Roger Ferguson.
The above-mentioned sources said that the bank liked the two women, Yellen and Brainard. Progressive members of Congress are satisfied.
Neither the Fed nor Biden’s power transition team immediately commented on the news. However, last weekend there was news that Brainard dropped from the list of hot candidates. The media said at the time that Brainard was a popular candidate for the post of Secretary of the Treasury before the election, and since Biden announced his victory, Brainard has hardly contacted the transitional officials of the Biden team.
Brainard has served as a member of the Federal Reserve Board of Governors since 2014. Her term is until January 31, 2026. Currently she is the only Democratic member of the Federal Reserve Board of Governors.
Prior to serving as a member of the Federal Reserve Bank, she served as an advisor to the U.S. Treasury Secretary in 2009 and served as the Under Secretary of the U.S. Treasury from 2010 to 2013.
Powell’s chairmanship of the Federal Reserve will expire in 2022. His predecessor was Yellen. President-Elect Biden has not clearly expressed his preference for the future Fed chairman or Treasury Secretary. However, from the beginning of the campaign, Biden promised to include more women as policymakers in his government.
Last Thursday, President-Elect Biden said that he had already thought out the list of candidates and would not say who they were. However, he also gave a clue, saying that “this is a candidate who will be accepted by all members of the Democratic Party.”
The White House Chief of Staff Ron Klain, appointed by President-Elect Biden last Sunday, confirmed that he will announce the list of cabinet members he has selected on Tuesday.
President Trump’s former National Economic Council director, Gary Cohn, praised Biden’s choice, tweeting, “I have no doubt she will be the steady hand we need to promote an economy that works for everyone, especially during these difficult times.”
Previously, some analysts believed that Janet Yellen would not discourage Wall Street. Yellen may be a candidate for Treasury Secretary acceptable to both parties and political and business circles in the United States.
Although she may strengthen supervision, it will not bring about disruptive changes. If she serves as Secretary of the Treasury, Yellen will maintain a moderate attitude on deficit spending, and the US Treasury Department may relax the Fed’s conditions for providing loans to state and local governments and small businesses.