MercoPress. South Atlantic News Agency

Powell takes oath as Fed's chair second term; first African American woman joins US central bank

Powell's new term as Chair ends on May 15, 2026, and his term as a member of the Board ends on January 31, 2028

Jerome H. Powell on Monday took the oath of office for his second term as Chair of the Board of Governors of the Federal Reserve System. Vice-Chair Lael Brainard administered Chair Powell's oath in the press briefing room of the Board's Martin Building.

President Biden re-nominated Mr. Powell in November 2021, and he was confirmed by the United States Senate on May 12, 2022. His new term as Chair ends on May 15, 2026, and his term as a member of the Board ends on January 31, 2028.

Other members joining the Fed Board include Lael Brainard the new Board vice-chair, plus Philip Jefferson and Lisa Cook, both African Americans.

Ms Cook is the first African American woman to sit on Federal Reserve's Board of Governors The oath was administered by Chair Jerome H. Powell in the press briefing room of the Board's Martin building.

President Biden nominated Dr. Cook on January 13, 2022. She was confirmed by the United States Senate on May 10, and her term expires on January 31, 2024.

The new composition of the central bank's Board means that six of seven members have taken office only a few weeks before the next FOMC meeting, 14/15 June, when all indicates that a 50 basis points or even 75 basis points increase could be agreed as the United States faces the highest inflation rate in four decades.

At the start of May, the Fed’s benchmark interest rate was raised by 0.5 percentage points to a target rate range of between 0.75% and 1%. The hike is the largest since 2000 and follows a 0,25 percentage point increase in March, the first increase since December 2018.

More rate rises are expected. The Economist Intelligence Unit expects the Fed to raise rates seven times in 2022, reaching 2.9% in early 2023. Starting in June, officials also plan to shrink their US$ 9trillion asset portfolio, a policy move that will further push up borrowing costs.