Yellen votes for Powell to be re-elected as Fed chair

U.S. Treasury Secretary Janet Yellen has told senior White House advisers that she supports the nomination of Jerome Powell for re-election as Fed chair. U.S. President Joe Biden has yet to decide, but he may do so around Labor Day.

Powell was nominated by former President Trump as Fed chair in 2018 to succeed Yellen. The Fed chair serves a four-year term. The White House has been looking more broadly for a possible candidate for the position. A team of advisers has been studying public speeches and comments from various candidates, paying particular attention to perceptions of the labor market, they said. Yellen's support gave Powell a huge boost to re-election, and her nearly 20 years at the Fed, including four years as Fed chair, make her advice very important.

Uncertainty over the impact of the delta variation could spark caution about changing the helm of the Fed during a crisis. The coming months could be tricky for the Fed, as the pandemic creates more uncertainty about the pace of the economic recovery, including the path of monetary policy. Some Fed officials have signaled a desire to begin reducing monthly bond purchases this year, while Powell has promised not to surprise markets with the eventual cut.