A relatively surprising development: Federal Reserve chair Jerome Powell's four-year term expires in February 2022, with his only real competitor being Lael Brainard, the only Democrat on the Reserve's Board of Governors. Brainard among other things repeatedly donated to Clinton's campaign in 2016 while being on the board, despite being supposed to be apolitical. Biden was thinking about promoting her to Treasury Secretary last year but decided against it - at the time she said that she
would prefer to be Fed Chair, but wouldn't reject the Secretary position. Brainard is a member of the progressive camp and is buddies with Elizabeth Warren, who is making a habit of trying to get Federal Reserve officials purged for insider trading or frontrunning.
Given the heavily establishment/business faction slant (as
@Gehenna would put it) of the Reserve then, the future is obvious: Powell will get the honor of wrecking the American economy for four more years. Right? Nope. The progressive magazine The American Prospect
just leaked (
archive) Jerome Powell's trades made on October 1, 2020 - where he sold somewhere between $1-5 million dollars of stock. More damningly perhaps, he's holding between $5-25 million in SPY ETF shares, an ETF which is very obviously influenced by what the Federal Reserve does.
Why is October 1 and him selling stocks on that date significant? Well, that was the day before Trump announced he had COVID. On that day Powell was also in contact with Treasury Secretary Mnuchin 4 times, pressing Trump's admin to introduce more fiscal stimulus. 5 days later on October 6th he gave a speech saying that failure to introduce that stimulus would have "tragic" economic consequences.
Given the recent trend of multiple high-ranking officials in the Reserve being fired in disgrace or forced to resign, and with Warren in particular putting in overtime on the Reserve, this probably means nothing but good things in the future of Brainard. Her odds of becoming Fed chair just increased massively in betting markets:
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TL;DR progressives making moves to try to take control of the Federal Reserve, normally a very conservative institution but also very powerful and it has gargantuan influence over the monetary system