New Faces
The Federal Reserve is one of the most important components of the American financial system and economy. From controlling interest rates to hosting important meetings which move markets, the Fed’s reach on the U.S financial system is far reaching and integral to the operation of the country. Considering this, those who are in charge and making the decision for the organization are supremely important to the economy. In the next few months, those people could be changing around a bit with new faces showing up. More specifically, there will be three new governors, a new vice chairman, a new banking chief and likely a couple new regional presidents. Despite this major shift in power, the larger picture of the economy could look the same.
This is because, according to Fed-watchers there will be little to no ideological difference with the new members on the Board of Governors. Confirmed new members Sarah Bloom Raskin, Lisa Cook and Philip Jefferson will be nominated by President Biden in the coming days. Although no major changes are expected, some minor changes may be at hand, with Raskin expected to take a “heavier hand” in her role as the vice chair for bank supervision than her predecessor, Randal Quarles. Looking ahead these changes could mean different decisions being made by the federal reserve and something to keep an eye on. Either way, with inflation rates rising rapidly, the Fed has a lot to handle. What do you think about this shift? And could it be bigger than most seem to think?
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.
