Biden Taps Fed’s Brainard for National Economic Council Director
Last week, President Biden named Federal Reserve Vice Chair Lael Brainard as his top economic advisor, replacing outgoing NEC Director Brian Deese. Brainard will work alongside Treasury Secretary Janet Yellen, another former Fed official, as the White House continues to battle inflation and as Biden prepares for a likely reelection campaign.
Biden said in a statement that Brainard “brings an extraordinary depth of domestic and international economic expertise, having previously served at CEA, NEC, the Treasury Department and the Federal Reserve. She is a trusted veteran across our economic institutions, and understands how the economy affects everyday people.”
Bloomberg noted that the Biden administration has shifted its economic focus to implementing laws such as the Inflation Reduction Act, which was passed during Biden’s first two years in office. Brainard’s transition to the White House leaves an important opening at the Fed, as the central bank decides when to pause the most intense campaign of interest-rate increases in 40 years.
Though the Fed has been quick to raise interest rates to combat inflation, Brainard recently noted that this can likely be achieved without too much damage to employment. It is unclear who Biden will nominate to replace Brainard at the Fed, or when that nomination will take place.
Brainard was nominated by President Obama to be a member of the Board of Governors of the Fed System in 2014, and was an undersecretary of the Treasury Department from 2010 to 2013. She also served as deputy national economic advisor under President Clinton.