One Versus One 🥊
Many elections are set to occur in 2022 in the United States, like the midterms to decide how the legislative branch of the United States will look like, gubernatorial elections to elect state leaders, and local elections for state legislatures. The economy relies on these elections, but not just in the way you think. Many government positions are up for grabs in 2022, including the Chair of the Federal Reserve, which the President gets to elect, and we all know how valuable that position is.
Now, the two candidates in the race are incumbent Jerome Powell, who we all know and love, and Lael Brainard. News outlets have reported that the decision could be made as early as this week because President Biden has had an individual meeting with each one of them. Looking at Powell, many believe that he will be re-elected as he has the support of Biden’s senior advisers and Democratic lawmakers while being a Republican. To many, Powell has done a great job during the COVID-19 pandemic regarding monetary policy. However, reports say that Brainard’s meeting with Biden went well and extended past the scheduled time slot, which has added a twist to the race. When it comes to monetary policy, though, they think alike. Both believe that inflationary pressures are a short-term effect and will die off, and Brainard was a contributor to Powell’s August 2020 plan to not raise rates to fight off inflation. The only main difference seems to be regulation, with Brainard favoring regulation on banks and other parts of the financial system, which gives her support from progressive Democrats. In the end though, it looks like the result of this race will rely on politics more than the economy itself. Who do you think will win?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
Originally published at https://invstr.com on November 16, 2021.