By Noel Randewich

(Reuters) – Federal Reserve Chairman Jerome Powell remains favored for renomination by the White House, and if recent history repeats itself a decision may come at any time before the central bank meets again in early November.

Wall Street anticipates that Powell will be nominated again by President Joe Biden to continue his four-year tenure.

According to Keith Lerner (Co-Chief Investment Officer, Truist Advisory Services), “I believe the market would appreciate that because it’s continuity and they have grown comfortable with him; he’s a well-known quantity.” “I think that the Street generally has a positive outlook.”

Political betting website Predictit https://www.predictit.org/markets/detail/7398/Whom-will-the-Senate-next-confirm-as-Chair-of-the-Federal-Reserve shows Powell with around an 84% chance of being reconfirmed by the Senate, down from 90% on Sept. 12 but roughly even with where his chances stood in July. The site indicated that the chances of Fed Governor Lael brainard being re-confirmed by the Senate were around 15%.

(Graphic: Betting odds suggest Powell gets another term – https://graphics.reuters.com/USA-MARKETS/POWELL/dwpkrdlnrvm/chart.png)

Powell replaced Janet Yellen as chair of the Board of Governors of the Fed in February 2018, and has had to maneuver the economy through its worst crisis since World War Two, battered by the COVID-19 pandemic that started early last year.

Powell’s presidency has seen the U.S. stock markets rise, thanks to extraordinary U.S. bank measures that protected the economy from the pandemic coronavirus.

Under Powell, the has surged about 60%, in line with the index’s gain during Yellen’s four years in charge of the Fed, when Wall Street extended its recovery from the 2008 financial crisis into a nearly decade-long bull market.

The S&P 500 increased 39% during Ben Bernanke’s eight-year term through January 2014.

(Graphic: Fed heads and the S&P 500 – https://fingfx.thomsonreuters.com/gfx/mkt/lgvdwkaedpo/Pasted%20image%201632423060232.png)

The Biden administration is actively discussing a decision about the next Fed chair, according to people familiar with the matter, although White House press secretary Jen Psaki has declined to comment in recent days on the president’s timeline. The nominations at the November Fed meeting would be in line with the time when the two previous Fed chairs were announced.

Biden’s move comes at a crucial moment for the central bank. The U.S. stock exchange is trading at new record highs and investors are expecting the Fed to start tapering its bond purchasing program in November. Powell provided guidance following Wednesday’s meeting.

(Graphic: The Fed’s ballooning balance sheet – https://fingfx.thomsonreuters.com/gfx/mkt/myvmnoxwkpr/Pasted%20image%201632421310361.png)

Many investors were also surprised by a hawkish tilt from the central bank on future rate increases, with nine of 18 U.S. central bank policymakers projecting borrowing costs will need to rise in 2022.

Graphic: When will the Federal Reserve raise rates? – https://fingfx.thomsonreuters.com/gfx/mkt/znpnebjgrvl/Pasted%20image%201632335653650.png)

Progressive (NYSE:) Democrats want the Fed to take on a more expansive role in the economy, by beefing up efforts to bolster employment, heading off climate risk and addressing inequality. Some want the Fed’s monetary policy to remain the same, while focusing more on fighting inflation. They also wish to see the Fed reduce its influence in financial markets as well as its oversight.

(Graphic: Key moments for Powell and the S&P 500 – https://fingfx.thomsonreuters.com/gfx/mkt/egpbkyqwzvq/Pasted%20image%201632423410280.png)

Powell’s focus on jobs has won praise from the Biden administration and among the broader community of Democratic policy analysts. Powell, a private equity lawyer and former senator from Pennsylvania, has received endorsements by some Republican members of Congress for his second term.

(Graphic: The Fed and unemployment – https://fingfx.thomsonreuters.com/gfx/mkt/zdvxodkwapx/Pasted%20image%201632421746246.png)