By Andrea Shalal

DUBLIN (Reuters), – U.S. Treasury Secret Janet Yellen suggested that President Joe Biden choose an “experienced” and “credible” Federal Reserve chair in order to reassure the markets. Jerome Powell, current chair, fits the bill. However, other candidates would also be suitable.

Powell is a Republican who was appointed by President Donald Trump to the post. Some economists and investors worry that financial markets will be affected if Biden chooses another candidate.

Yellen has never publicly endorsed a candidate. She told Reuters that she offered her advice to President Powell and that it was up to him to decide. According to media, she did not say whether Powell supported her.

Yellen responded that market concerns shouldn’t be considered in Biden’s decision.

After Group of 20 meeting in Rome, Powell, she believes, has built that reputation. However, there are others who would also be equally perceived,” she stated aboard a government aircraft en route from Rome to Dublin.

Markets shouldn’t be upset if they believe the person isn’t credible. President should nominate someone with experience and credibility.

Yellen, who was nominated by President Barack Obama to be the head of the U.S. Central Bank, is the nation’s first female Treasury secretary. Since October, or even early November, all the recent candidates for this job were announced.

Since September, Powell’s odds on betting markets are down due to sharp criticism by progressive Democrats as well as a Securities Trading scandal that involved Fed officials. Powell remained the 70% favorite in the PredictIt.org online political gambling site.

Alternatives include Fed Governor Lael Mindard. This was an Obama Treasury official who was also nominated to the Fed Board in 2014.

Brainard, who is thought to be more conservative than Powell is partly due to her desire for super-easy monetary policies until the recovery of employment is complete following the COVID-19 recession. Powell has indicated that he prefers to wait for a more solid recovery in the job market, despite recent high inflation.

Fed policymakers will announce this week plans to reduce their accommodation for pandemics. One step is to pull back on the amount of bonds that they purchase each month. An increase in interest rates may not be realized for some time.

Yellen indicated that she anticipated and hoped for Biden to take a decision soon, but she couldn’t give a timeline.

Sherrod Brown, a Democratic senator, stated last week that Biden would most likely present a “whole list” of Fed Board nominees. It may include Powell or ensure a greater focus on workers.

He chairs the Senate Banking Committee. It oversees Fed nominations and must approve them before the Senate can consider their approval.

Powell’s term expires as Fed chair in February. There is one empty seat on the Fed Board, which has seven members.