Janet Yellen gets another chance to shape the future of the world

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Jerome H. Powell’s term as head of the Federal Reserve ends in February. Space for the vice president and the Fed’s top bank regulator will also soon be up for grabs, and a position on the Fed’s Board of Governors is already vacant.

Assuming officials leave when their leadership term expires, the Biden administration could quickly appoint four of the Fed’s seven board members, powerful policymakers and exclusive regulatory authorities with permanent voting rights over monetary decisions. Jeanna Smialek and Alan Rappeport report for The New York Times.

Many who want to replace Mr. Powell underestimate the role that Treasury Secretary Janet Yellen will play in shaping President Biden’s decision whether to fire Mr. But Treasury secretaries have traditionally been at the center of the Fed election process. Ms. Yellen’s views will carry significant weight in the negotiations and will color both who will be considered and the final outcome.

It’s unclear where Ms Yellen’s preferences lie, but it’s common knowledge that she was unhappy when Mr Trump broke the tradition of reappointment in her case.

Regulation and climate are the main reasons some Democrats are lining up to replace Mr. Powell. READ THE FULL ARTICLE →

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