Breaking: US Pres. Biden nominates Jerome Powell as Fed chair

White House announced on Monday that Federal Reserve Chair Jerome Powell was nominated for a second four-year term by President Joe Biden.

Lael Brainard, who reportedly was the other top candidate for the position, will become the new vice-chair, the press release further revealed. 

Market reaction

The dollar gathered strength against its major rivals on this announcement and the US Dollar Index was last seen reading at its highest level since July 2020 at 96.28, rising 0.22% on a daily basis.

Key takeaways as summarized by Reuters

"Powell has provided steady leadership during an unprecedentedly challenging period."

"Brainard has played a key leadership role at the Fed."

"Powell and Brainard share the administration’s focus on ensuring that economic growth broadly benefits all workers."

"Powell and Brainard have advanced key priorities that Biden shares including addressing financial risks from climate change, staying ahead of emerging risks to financial system."

"US meeds steady, independent and effective leadership at the fed so it can advance goals of keeping inflation low and prices stable."

"Biden has full confidence in Powell and Brainard's experience, judgement and integrity to continue delivering on those mandates."

"Biden still has three fed seats to fill, including vice chair for supervision, and intends to make those starting in early December."

"Biden is committed to improving diversity in the board's composition."

"Biden is confident Powell and Brainard's focus on keeping inflation low, prices stable and delivering full employment will make US economy stronger than ever before."