Biden names Fed's Brainard top White House economic adviser
President Biden has named Federal Reserve Vice Chair Lael Brainard to be his lead economic adviser as the new director of the National Economic Council.
The president also plans to nominate long-time adviser Jared Bernstein as Chair of the Council of Economic Advisers.
Brainard will step into the role as the U.S. economy faces high inflation, rising interest rates, and slowing growth. Brainard will succeed Brian Deese, who steps down this month, and will be responsible for advising the president on economic policy and overseeing the implementation of Biden's key economic packages on infrastructure and semiconductor investment.
Brainard will also be responsible for navigating the economic impact of the war in Ukraine and talks with House Republicans over raising the nation’s borrowing limit.
"Lael, one of the country's leading macroeconomists, brings an extraordinary depth of domestic and international economic expertise, having previously served at CEA, NEC, the Treasury Department and the Federal Reserve," Biden said in a statement. "She is a trusted veteran across our economic institutions, and understands how the economy affects everyday people."
Brainard's departure from the Federal Reserve also opens up the key Vice Chair role, the second-in-command to Fed Chair Jerome Powell, at a critical moment for the central bank.
The Federal Reserve has raised interest rates by 4.5% since March 2022, its most aggressive rate hiking campaign in over 40 years, in an effort to bring down inflation that reached 9.1% in the summer of 2022. Data out Tuesday showed price increases continue to slow, but with headline inflation rising 6.4% over the prior year in January, the Fed remains far from its goal of 2% inflation.
Markets currently expect the central bank to raise interest rates by another 0.25% in March.
Brainard will be the second female director of the NEC after Laura Tyson, who served under President Bill Clinton.
Brainard, 61, a Harvard-trained economist, was nominated by President Obama to serve as a Fed Governor back in 2014. After considering nominating Brainard as the next Fed Chair in 2021, Biden named her to serve as the central bank's second in command and renominated Powell in the top spot, given his bipartisan support and an easier path to confirmation in the Senate.
Brainard previously served as Under Secretary of the Treasury and counselor to the Secretary of the Treasury, and was the agency’s top diplomat as the U.S rep for the G-20 from 2009 through 2013.
Some have speculated that the NEC position would be a stepping stone for Brainard to succeed Janet Yellen as Treasury Secretary if Biden wins re-election next fall.
Bernstein, Ramamurti, Boushey named to new roles
In addition to Brainard's appointment, Biden announced plans to nominate Jared Bernstein to replace Cecilia Rouse as chair of the Council of Economic Advisers.
The president said of Bernstein: "Jared is an expert on worker empowerment and a worker-centric economic policy. A former social worker, Jared was in the foxhole with me while I was Vice President, and he understands that a job is about far more than a paycheck, it’s about the dignity of work."
The president also named Bharat Ramamurti, who currently serves as Deputy Director for the National Economic Council, to also serve as an Adviser for Strategic Economic Communications.
Biden also named Heather Boushey, who currently serves as a Member of the Council of Economic Advisers, to also serve as Chief Economist to the Invest in America Cabinet.
Joelle Gamble, who currently serves as Chief Economist at the Department of Labor, will be Deputy Director of the National Economic Council.
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