Biden taps Powell for 2nd term as Fed chair

US President Joe Biden announced his nomination of Jerome Powell for a second term as Federal Reserve Chair.

Biden on Monday revealed his intention to keep Powell in the post after his current term expires in February.

Powell took the job in 2018, when former President Donald Trump was in office. Under Powell, the central bank managed to steer the economy through the pandemic-induced slowdown by loosening its monetary policy in March 2020.

Biden's decision to tap Powel for a second term comes despite voices of discontent from some Democrats over Powell's handling of bank regulations and climate change.

Biden also announced that he intends to nominate Fed governor Lael Brainard to serve as vice chair of the central bank's board of governors. Some Democratic lawmakers favored Brainard over Powell for the Fed chair position.

Biden released a statement saying "I'm confident that Chair Powell and Dr Brainard's focus on keeping inflation law, prices stable, and delivering full employment will make our economy stronger than ever before."

The nominees will need to be confirmed by the Senate.

Powell will face the challenge of keeping economic recovery on track while tackling inflationary pressures. The Fed began scaling back its asset purchase program in November.