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Will Biden Make a Historic Mistake at the Fed?

The past 30 years should have taught Democrats to put their own economic policy priorities before symbolic gestures of "bipartisanship." If US President Joe Biden does not replace Federal Reserve Chair Jerome Powell with Lael Brainard, he will almost certainly regret it.

BERKELEY – In 1987, Alan Greenspan was appointed by Republican President Ronald Reagan to chair the US Federal Reserve Board of Governors, succeeding Paul Volcker. Eight years later, President Bill Clinton, a Democrat, was impressed by Greenspan’s willingness to use monetary policy to offset his administration’s fiscal retrenchment. This kept growth from stalling in the 1990s, and Greenspan did it despite partisan opposition from Republicans who denounced him for too-loose monetary policy. In 1996, Clinton reappointed Greenspan to a third term, and then to a fourth in 2000.