Biden Signs Up for Powell’s Inflation


President Biden’s nominations Monday for the leadership at the Federal Reserve are all too much in character for this Administration. By keeping Jerome Powell in the chairmanship, while elevating progressive favorite Lael Brainard to vice chair, Mr. Biden may think he’s deftly straddled the Democratic politics. Instead, he is buying their monetary policy and inflation.

Mr. Powell has run the Fed for four years, and Ms. Brainard has been a Governor for more than seven. As far as we can tell they have never disagreed on monetary decisions, though Ms. Brainard (an Obama appointee) has dissented in favor of tougher bank regulation. Neither deserves reappointment on their record of the last four years, as inflation has risen three times above the Fed’s 2% mandate to the highest rate in 30 years.