“By this time, you should have a pretty clear idea who" will be leading on policy decisions. “It’s starting to become urgent," said Goldman Sachs chief economist Jan Hatzius. Biden is set to depart Thursday for a six-day trip to Europe, meaning he is likely to make his announcement at a later date than his recent predecessors. For example, then-President Donald Trump announced Mr. Presidents have typically announced their nominee in October or by early November to give the Senate sufficient time to confirm their pick. Powell’s term as Fed chair expires in February, meaning he will lead the central bank’s policy meetings next week, in mid-December and in late January. “The lack of White House attention to the Fed creates potentially enormous policy uncertainty the Fed may be at a policy pivot point."Ī White House representative said, “The president is engaged on these issues with his senior economic team and will make decisions in a thoughtful manner." economist at SGH Macro Advisors, in a note to clients. “This tension may occur in concert with a possible leadership vacuum at the Fed," said Tim Duy, chief U.S. Recent comments from Fed officials have indicated more internal divisions over this question. Biden hasn’t decided on who will run the Fed, however, analysts say there is a potential for increasing uncertainty over how and when the central bank might raise interest rates from near zero next year. Powell could use his postmeeting press conference to provide additional nuance about how the Fed sees the outlook for economic growth, employment and inflation.īecause Mr.
The Fed is likely to detail at its meeting next week its plans to begin winding down its $120 billion-a-month bond-buying stimulus program and end the purchases by next June. Uncertainty over whom President Biden will name to lead the Fed next year hangs over the central bank’s looming policy decisions on what to do if the recent rise in inflation turns out to be more persistent than anticipated.
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