Jeff Mason

(Reuters] President Joe Biden continues to weigh whether Jerome Powell should remain as Federal Reserve chair for a second term. Or, he could elevate Fed Governor Lael Bullard to that position. A White House official confirmed Wednesday.

There is pressure coming from progressives as well as moderates within the Democratic Party to choose the winner. The White House knows this. The official stated that there are both pressures on both the finalists and themselves.

Biden met last week with the candidates and is expecting a decision in the coming weeks.

Powell, at 68 years old, was named chair of the committee by Donald Trump. His four-year term ended in February and is now considered to be the front-runner.

His backing comes from both moderate Democrats and Republicans. He also has a history of helping to avoid a financial crisis, as well as helping to create an unexpectedly strong and rapid recovery from the recession.

However, his criticisms include supply bottlenecks driving inflation to an unprecedented 31-year high while millions of Americans struggle for jobs. He also faced criticism for the trading scandal he witnessed that led to the resignation of two Fed chiefs and the rewriting of ethics rules at the central bank.

Democratic Senator Elizabeth Warren is against his nomination. Progressives are pushing Brainard, 59. Brainard was appointed to the board by Democratic President Barack Obama in 2014.

Brainard’s stance on monetary policy is more cautious than that of the president. She also has a greater grasp on regulation. Her nomination is unlikely to receive the support of Republicans.

PredictIt.org’s online gambling site, Powell is the odds-on favourite, with 68%. Brainard shares are down 31%

Biden has the opportunity to influence the other seven members of the seven-member Fed board, regardless of which Fed post he takes. There is one vacant seat. Governor Randal Quarles (previously Fed vice chair of supervision) plans to step down at the end this year. Vice Chair Richard Clarida’s term expires in January.

Biden could choose Brainard to be the Fed Chairmanship. Quarles could then put Quarles in her old job. Quarles could write more strict rules for Wall Street, and possibly take an active role on climate change. Both are important priorities for progressives.