Democrats reportedly to reject Joe Biden’s Fed pick?

Former Vice President Joe Biden has reportedly nominated Federal Reserve board member Jerome Powell to serve as the next chairman of the Federal Reserve.

Biden is a Democrat, but has said he does not believe the Democratic party has a top choice for Fed chairman. The nomination now moves to the Senate, where Powell will face a vote.

The Washington Post reported Biden’s choice on Friday.

Powell, who has served on the Fed’s board since 2012, is likely to win approval, barring new objections, as he is widely seen as a centrist and conciliator within the central bank.

The Federal Reserve Board’s eight-member board has been one of the most contentious panels in Washington. President Trump was appointed by the GOP-controlled Congress to chair the board, and Senate Democrats campaigned against previous nominees, saying they were too close to Wall Street. The board also has its own committee of governors that is led by the chair of the Federal Reserve.

Democrats fought against the financial services former-Fed governor Janet Yellen, calling her insufficiently aggressive in addressing the dangers of rising inequality and damage caused by the 2008 economic crisis.

President Trump nominated Fed governor Jerome Powell, a Republican, to be his vice chairman for regulation, which was then allowed to fill another vacancy on the board.

Despite that appointment, the Democrats blocked an attempt by the Fed to neuter the Volcker Rule, one of the Obama administration’s attempts to rein in Wall Street practices that contributed to the financial crisis.

“One thing is clear: No one will get a promotion simply because they’ve worked for the Federal Reserve for a long time or because they agree with the Fed’s current monetary policy,” Josh Bivens, research director at the Economic Policy Institute, told Fox Business in August.

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