(LibertySociety.com) – Nobel-Prize-winning economist Joseph Stiglitz is questioning whether the current chairman, Jerome Powell, is the best person for the Federal Reserve position going forward. In his view, a member of the Board of Governors of the Federal Reserve System, Lael Brainard, is a better fit because of her openness to using the position in a more progressive and regulatory way.
For U.S. President Joe Biden to be true to his agenda he should not renominate Jerome Powell as Federal Reserve chair, Nobel prize-winning economist and longtime Democrat adviser Joseph Stiglitz said in an interview. https://t.co/rNmeLoV3sW
— Newsmax (@newsmax) September 8, 2021
Although she and the current chairman share the same views on currently keeping interest rates low, they differ on some key points.
A card-carrying Democrat, Brainard believes the United States is behind on having its own digital currency, and she’s also likely to use the Fed position to account for future climate risks to mitigate their impact on the country’s financial stability.
If President Biden wants to fulfill his promise of addressing climate change, Stiglitz says that Brainard is the only logical choice for Chairman of the Federal Reserve in February 2022.
But any change in financial leadership could mean trouble for the market, so the question is: Will the president stay with the status quo or risk making investors and businesses uncomfortable in the wake of the pandemic and side with change?
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