Biden’s Latest Nominee Seems To Be One Person

( The Wall Street Journal has sources saying that Vice Chair of the Federal Reserve Lael Brainard, among the more dovish and progressive Feds, is in line to become President Biden’s top economic counselor. They also said that the announcement may be made today.

Brainard will take over as head of the National Economic Council (NEC) from departing director Brian Deese at a time when the economy faces significant challenges, including rising inflation, high-interest rates, and slowing growth. If Brainard were to join the president’s staff, she would be the second ex-Fed official to do so. Janet Yellen, formerly of the Federal Reserve Board, now serves as secretary of the Treasury.

Brainard’s sudden departure from the Fed is surprising with the president in a re-election year. She will oversee the administration’s economic policymaking efforts as a whole.

Some analysts have speculated that if Biden is re-elected in 2024, Brainard may replace Yellen at the Treasury Department after serving as chairman of the NEC.

With the departure of Cecilia Rouse as head of the Council of Economic Advisers this spring, Biden’s economic team will be short two members. According to those with knowledge of the situation, Jared Bernstein might take over for Rouse.

And at the Fed, Brainard’s action will pave the way for a halt in the Fed’s most aggressive interest-rate rises in a generation to combat inflation.

The Wall Street Journal noted how rare it was for Fed officials to leave and accept posts in the White House suddenly. It’s occurred before, most recently when Ben Bernanke resigned from his position as a Fed governor to head the CEA in 2005. He became friendly with “Dubya” Bush, who ultimately chose Bernanke to lead the Fed the following year. To take on the role of CEA head, Ms. Yellen resigned from her post as a Fed governor during Bill Clinton’s tenure.

It comes as no surprise that Brainard was chosen since she is among the most dovish and progressive of the Federal Reserve Board. In addition, the White House is in a critical political position as it seeks re-election next year.