Federal Reserve Vice Chair Lael Brainard will step down from her position and serve as President Joe Biden’s top economist, the White House said on Feb. 14.
Brainard will serve as the new head of the National Economic Council (NEC), succeeding Brian Deese, who recently announced his resignation.
Biden also named long-time associate Jared Bernstein to chair the White House Council of Economic Advisers and tapped Joelle Gamble, chief economist for the Department of Labor, as the deputy NEC director.
“Lael, one of the country’s leading macroeconomists, brings an extraordinary depth of domestic and international economic expertise, having previously served at CEA [Council of Economic Advisers], 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.”
Over the past year, Biden has relied heavily on the NEC to develop new economic ideas and solutions to today’s challenges and sell the president’s agenda to Congress and the American people.
Brainard maintains extensive government experience. In 2014, she joined the Federal Reserve as a governor. During the Obama administration, she was the undersecretary for international affairs. Brainard was also the deputy director for the NEC in the Clinton White House.
Some experts have anticipated that she could become the next secretary of the Treasury or head of the Federal Reserve if Biden wins his reelection bid in 2024.
The administration is reshaping its economic team and overall personnel midway through the president’s first term as the nation grapples with elevated inflation, a slowing economy, and climbing interest rates.
“This team will be committed to implementing that strategy, while managing the transition of our historic economic recovery to steady and stable growth,” Biden said. “They will work tirelessly to ensure every American enjoys a fair return for their work and an equal chance to get ahead, and that our businesses can thrive and outcompete the rest of the world.”
“Let’s finish the job.”
Despite maintaining a dovish attitude throughout her tenure at the central bank, Brainard has turned hawkish on monetary policy, advocating for a more restrictive policy until inflation returns to the Fed’s target of 2 percent.
At the Fed’s FOMC policy meeting on Jan. 31 and Feb. 1, members voted to raise interest rates by a quarter point, to a target range of 4.50 to 4.75 percent.