Biden Picks Fed Official to Lead National Economic Council
Jared Bernstein, who will lead the Council of Economic Advisers, and Fed vice chair Lael Brainard will be prominent economic advisers.
Washington-
According to sources, President Biden chose Federal Reserve vice chair Lael Brainard to lead the National Economic Council.
He is also poised to choose Jared Bernstein, a longstanding confidant from Mr. Biden's vice presidency, to chair the White House Council of Economic Advisers.
Council member Mr. Bernstein.
Ms. Brainard, whom Mr. Biden considered for Treasury secretary and Fed chair, would succeed Brian Deese, who is resigning this month after two years as the president's senior economic adviser.
She joins Mr. Biden's economic team as his government shifts from passing legislation to implementing the multi-trillion-dollar economic program he signed into law in his first two years.
The decision adds another seasoned policy expert to Mr. Biden's close circle of aides, but it might cause problems at the Fed, including a fierce Senate fight to confirm Ms. Brainard's vice chair.
Mr. Bernstein would replace current head Cecilia Rouse, who is returning to Princeton University.
Mr. Bernstein would likely become the council's most outspoken labor union backer, and he would continue to advise a president who relies on a small, long-serving group of advisers on economic policy.
The move would also provide Mr. Biden a reliable economic spokesman as the president prepares to announce he will run again in 2024, a campaign that will focus on the economy.
During his time in the Biden administration, Mr. Bernstein was a liberal voice on cable news.
Ms. Brainard will immediately become a new public face for the president's efforts to sell Americans on his economic achievement, including record job growth, even as surveys show people remain apprehensive about the economy.
In his State of the Union speech and public appearances this year, Mr. Biden has made clear that he plans to run again on the strength of his economic record, highlighting construction projects funded or spurred by new federal spending on infrastructure, advanced manufacturing, and the transition to lower-emission energy sources.
Mr. Biden, who pledged to construct the most diverse cabinet and core White House aides in history, would have one white man and two white women in the three most critical economic policy posts in the administration.
The Treasury secretary, Janet L. Yellen, will serve Mr. Biden's four-year term.
Decisions could affect White House and Fed policy.
The Fed's most liberal official, Ms. Brainard, might slow interest rate hikes to curb inflation.
To moderate inflation, raising interest rates reduces consumer and business demand and the labor market.
Wall Street labels Ms. Brainard dovish when she prioritizes employment growth.
“Lael Brainard was on the dovish end of the spectrum, and well respected,” said Harvard economist Jason Furman, a former Obama administration economic adviser.
“One restraint voice will be missing.”
Since May, Ms. Brainard, 61, has been the Fed's vice chair and a Washington governor since 2014.
She was a Clinton White House and Treasury official before that.
Her admirers say that expertise will help the president and his new chief of staff, Jeffrey D. Zients, prepare for Mr. Biden's projected 2024 re-election bid.
Mr. Biden's expansive industrial policy agenda will require coordination of spending, new regulations, and other efforts.
At a difficult time for the Fed, Ms. Brainard's resignation would open the No. 2 job.
This year, interest rate hikes to slow inflation may increase unemployment.
To confirm that inflation is decreasing, policymakers must determine how much pain to risk.
The Senate must confirm the next vice chair, so the White House may nominate someone with wide bipartisan support or who would not face a Democratic challenge.
Ms. Brainard's skills are hard to find.
“She will leave a hole,” said MacroPolicy Perspectives senior economist Laura Rosner-Warburton.
She led on international economics, macroeconomics, inequality, climate change, and more.
On Tuesday, Wall Street and academic economists speculated about who would replace Ms. Brainard.
Some suggested promoting a Fed governor like Lisa Cook or Philip Jefferson, both former academic economists.
One of the Fed's 12 presidents, like San Francisco's Mary C. Daly, was also rumored.
Janice Eberly from Northwestern University and Karen Dynan from Harvard University are academic economists who could run.
Heather Boushey and Mr. Bernstein are Council of Economic Advisers members.
He was appointed without Senate approval.
When accounting for three independent senators who vote with Democrats, Mr. Biden's party holds a thin 51-to-49 majority in the Senate, making leadership difficult.
Two years ago, Ms. Rouse became the Council of Economic Advisers' first Black chair.
Mr. Bernstein's economic research is quite different from Ms. Rouse's and most of her predecessors'.
Doctorate in social welfare.
He spent most of his career in Washington think tanks, focusing on economic inequality and programs to raise salaries and living standards for American workers.
In 2009, Vice President Joe Biden appointed him as his chief economist after 16 years with the liberal, pro-labor Economic Policy Institute.
E.P.I. called Mr. Bernstein “a relentless advocate for middle- and low-income households and for greater justice in the U.S. economy” in announcing his departure.
Mr. Bernstein left government in 2011 to join the liberal think organization Center on Budget Policy and Priorities.
He gave Mr. Biden monthly economic briefings during his 2020 campaign before the president nominated him to the Council of Economic Advisers.
Mr. Bernstein, more than Ms. Rouse, has appeared on television to defend Mr. Biden's economic policies and the economy under his leadership.
“Let's just speak about some facts,” Mr. Bernstein said on “Fox News Sunday” on recession fears this month.
517,000 jobs and 3.4 percent unemployment—the lowest since May 1969, when I was 13 years old.
These are not recessionary numbers—12.1 million jobs since this president took office, 10.5 million new small businesses.”
“But to be clear: Millions of those were added back from the pandemic,” Shannon Bream said.
Mr. Bernstein agreed.
3.4 percent unemployment is hardly recessionary.
January's half-million jobs aren't recessionary.
Last year's GDP growth was 2.9%.
That's the reality.”...