Powell reappointment to Fed chair backed by Yellen: report

Treasury Secretary Janet Yellen has backed Federal Reserve Chairman Jerome Powell’s reappointment to his position, multiple people with knowledge of the situation told Bloomberg.

Yellen has talked to senior White House officials to cast her support for Powell, the sources said, who would likely be voted through by both Democrats and Republicans. 

Powell was appointed by former President Trump in 2018, and former President Obama appointed him to the Fed in 2012.

The sources said the White House has broadened its candidate search and has been looking at public comments about views on the labor market from potential nominees. 

Two sources said there could be more hesitancy to cause big changes at the Fed due to the uncertainty the delta variant is causing in the market.

President Biden is likely to make a decision on who should fill the Federal Reserve chairman position around Labor Day weekend, sources told Bloomberg.

Powell has gained support from both Democrats and Republicans for standing up to Trump and keeping the financial markets stable at the start of the pandemic. 

Sen. Steve Daines (R-Mont.) wrote a letter to Biden on Thursday in support of reappointing Powell.

“Doing so would send a strong signal to households, businesses, and consumers that the head of the Federal Reserve continues to enjoy broad bipartisan support, and will act as necessary to achieve its dual mandate of price stability and maximum employment,” Daines wrote.