The long-awaited decision will be announced "in about four days," the US president told reporters on Tuesday during a trip to New Hampshire.

This deadline coincides with the end of discussions within the Democratic Party on the social and environmental reform plan "Build Back Better" wanted by Joe Biden.

The appointment of the president of the Fed is all the more delicate as it could be part of the negotiations, the Democratic Party being very divided on these new expenses.

Appointed as governor by former President Barack Obama before being promoted to President by Donald Trump, Republican Jerome Powell will complete his four-year term as head of the powerful Federal Reserve in February.

Joe Biden has the choice of offering him a second term, or appointing someone else.

In any case, it will be up to the Senate to vote to confirm or not the presidential nomination.

If the Democratic president chooses to rename Jerome Powell, his confirmation in the Senate is almost assured, at the risk, however, of offending the left wing of his party, which called not to rename him.

Joe Biden could also choose Lael Brainard, who had already been approached last year to become secretary of the Treasury.

The only Democratic governor of the Fed, and a fervent defender of stricter banking regulation, she is notably supported by the left wing of the party, which wants Fed action more focused on climate risks as well as social and economic justice. .

But his appointment could be blocked in the Senate.

Political color

Jerome Powell and Lael Brainard were both received on November 4 by Joe Biden, according to US media.

The president of the Fed is traditionally reappointed for a second term, but the former Republican President Donald Trump had, in 2017, broken with this custom.

He had appointed Jerome Powell to replace Janet Yellen, who had been the first woman to lead the Fed after his first term.

She is currently Joe Biden's Treasury Secretary.

Ms. Yellen has repeatedly praised Mr. Powell's work in recent weeks.

The White House will also, in the coming months, appoint three new governors to the Fed.

He will indeed have to fill a vacant seat, and replace two governors: Randal Quarles, appointed by Donald Trump and who will leave the Fed at the end of December following his resignation, and Richard Clarida, also appointed by the former Republican president, and whose mandate expires at the end of January 2022.

Joe Biden thus has the opportunity to retouch the political color of the powerful Federal Reserve, but will also have to conduct tough negotiations.

© 2021 AFP