Yellen endorses Powell for second Fed term, boosting his reappointment odds

Treasury Secretary Janet Yellen has reportedly told senior White House advisers that she supports reappointing Jerome Powell as Federal Reserve chair, a key endorsement that likely boosts his odds for a second term.

Bloomberg News reported that while President Biden has not yet made a decision, uncertainty over the economic impact of the highly contagious delta variant may have triggered more caution about changing leadership at the U.S. central bank.

Powell, a lawyer by training and a former Republican Treasury official, is generally respected on Wall Street and well-liked among lawmakers in both parties; Fed chairs – one of the most powerful players in Washington, with the ability to dictate the pace of economic growth – are typically nominated for a second term, often to reinforce the central bank's independence from politics. 

Yellen's backing amplifies Powell's odds of a second term, given her nearly two decades of experience at the Fed, including four years leading the central bank. She also has experience working directly with Powell, who served as a governor at the Fed under her leadership.