Brainard, Powell spotted at White House as Biden mulls Fed decision -source

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FILE PHOTO: Federal Reserve Chair Jerome Powell poses for photos with Fed Governor Lael Brainard at the Federal Reserve Bank of Chicago

By Trevor Hunnicutt and Jeff Mason

WASHINGTON -Federal Reserve Chair Jerome Powell and Governor Lael Brainard were spotted at the White House on Thursday as President Joe Biden mulls a decision on appointments at the central bank, according to a person close to the process.

Biden has not yet made a decision on whom he wants to be Fed chair but expects to do so soon, according to the source.

Investors believe Powell remains Biden’s likely pick, although progressives have been pushing for Brainard, viewed as both more dovish on monetary policy and as a stronger hand on bank regulation and in responding to risk from climate change.

If Powell is reupped, Biden could elevate Brainard to the Fed’s vice chair for supervision post, which she could use to shape the central bank’s rules for Wall Street and potentially position the Fed for a more proactive approach on climate change.

Powell’s term as chair ends in early February.

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(Reporting by Trevor Hunnicutt and Jeff Mason; Editing by Chizu Nomiyama and Andrea Ricci)