Bitcoin will not be banned in the US. President Biden picks Jerome Powell as next Fed chairman

Bitcoin will not be banned in the US. President Biden picks Jerome Powell as next Fed chairman
During his tenure as Fed chairman, Powell said the agency was “actively working to issue a CBDC” but was unlikely to support a complete ban on cryptocurrencies.

President Joe Biden has nominated Jerome Powell for another four-year term as chairman of the Board of Governors of the Federal Reserve System.

The White House announced on Monday that President Biden will nominate Powell to head the Federal Reserve when his current term ends in February. The executive cited Powell’s “decisive action” in reducing the economic impact of the pandemic, as well as creating 5.6 million jobs and a 4.6% unemployment rate.

In addition, Biden selected current Fed board member Lael Brainard as the agency’s vice chairman. Brainard’s 14-year term as a Federal Reserve member will expire in 2026 and Powell’s in 2028.

“I am confident that Chairman Powell’s and Dr Brainard’s focus on keeping inflation low, prices stable and ensuring full employment will make our economy stronger than ever,” – the US President said. “Together, they also share my firm belief that urgent action is needed to address the economic risks posed by climate change and to stay ahead of emerging risks in our financial system.”

Seven members are to serve on the Board of Governors of the Federal Reserve System, each nominated by the current US President, confirmed by the Senate and expected to serve a 14-year term. 

Although Powell would only serve four years of his current term if confirmed as Fed chairman, he will still attend a Senate Banking Committee confirmation hearing before his nomination can be voted on in the Senate. Randal Quarles announced on November 8 that he would step down by 2022, giving President Biden the opportunity to fill three seats at the Fed.

However, Monday’s election marks only a minor change in leadership at the Fed, as Biden did not get current Vice Chairman Richard Clarida to continue his duties from January 2022. 

The White House said Biden intended to announce his choices for those positions, as well as for Fed vice chairman for oversight, in early December, with a focus on “improving the diversity of the Board’s composition”.

During his time as Fed chairman, Powell has been vocal about the role of digital assets in US markets as the space grows in size and popularity. In September, he said the agency was “actively working on issuing a CBDC” but was unlikely to support an outright ban on cryptocurrencies such as Bitcoin (BTC).

24-11-2021, Mr Advice TEAM

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