Yellen supports reappointment of Fed Chair Jerome Powell

Washington, Aug 22 (SocialNews.XYZ) US Treasury Secretary Janet Yellen has told senior White House advisers that she supports the reappointment of Jerome Powell as chair of the Federal Reserve for a second term, local media reported.

Citing people familiar with the matter, Bloomberg said on Saturday that the White House has been looking more widely for possible candidates for the position and President Joe Biden hasn't yet made a decision, reports Xinhua news agency.

Yellen's backing gives Powell an enormous boost, as she has almost two decades of experience at the central bank, the report said, adding uncertainty over the economic impact of the Delta variant may trigger more caution about changing leadership at the Fed in the midst of a crisis.

Powell took office as chair of the Fed in February 2018 after he was nominated by former President Donald Trump in November 2017 to succeed Yellen.

The Fed chair serves a four-year term.

Yellen's support comes at an important time as Powell is scheduled to give a much-anticipated speech on August 27 during the annual Jackson Hole economic policy symposium, which may offer further clues on the Fed's taper plan.

Most Fed officials indicated last month that it could be appropriate for the central bank to start tapering asset purchases this year if the US economy were to evolve broadly as they anticipated, according to the minutes of the Fed's recent policy meeting released last week.

The Fed has pledged to keep its benchmark interest rate unchanged at the record-low level of near zero, while continuing its asset purchase program at least at the current pace of $120 billion per month until "substantial further progress" has been made on employment and inflation.

Source: IANS