Lyle Brainard, Vice Chairman of the US Federal Reserve, before being sworn in during a ceremony in Washington, D.C. on Monday, May 23, 2022.
Drago | bloomberg | Getty Images
The White House is likely to appoint Fed Vice Chairman Lyle Brainard to run the National Economic Council and Jared Bernstein to lead the Council of Economic Advisers, sources familiar with the matter told CNBC.
Both roles are integral to shaping the economic policy of the Biden administration as the United States tries to tame the rising cost of living across the country. The appointments are expected to be announced after new White House Chief of Staff Jeff Zients takes office, as soon as next week.
Sources confirmed to CNBC that decisions are not final. Politico reported earlier that the hires are close to closing. CNBC mentioned Last week Brainard was among the top selectors.
“There is no resolution on either of those positions, and any report to the contrary is inaccurate,” White House spokeswoman Emily Simmons told CNBC.
Brainard has a history of supporting tougher regulation on Wall Street, bucking several proposals to lift the rules that were put in place after the Great Recession. She has expressed interest in how climate change is affecting the financial sector. Biden previously considered her to serve as Treasury Secretary or as a replacement for Federal Reserve Chairman Jerome Powell.
Brainard’s appointment as the White House’s chief economic policy coordinator would hone relations between the West Wing and the Treasury Department, which have at times been fraught with friction, according to people familiar with the matter. Brainard and Treasury Secretary Janet Yellen, who said she intends to manage the treasury Until the end of Biden’s term, he served on the Federal Reserve Board for three years. From 2009 to 2013, Brainard served as Undersecretary of the Treasury and held deputy positions on the National Electoral Commission.
While the day-to-day responsibilities of the role include crafting the president’s economic agenda and coordinating labyrinthine government agencies, it is also seen as a respected position that can serve as a gateway to senior ministerial positions. Robert Rubin, who ran NEC from 1993 to 1995, was later appointed Secretary of the Treasury by President Bill Clinton. Lawrence Summers, who succeeded Rubin at Treasury, took the opposite tack: He returned to government to run the National Economic Council in 2009 for President Barack Obama.
Bernstein is a member of the board he is expected to chair, the White House Council of Economic Advisers. He has been a longtime Biden ally, serving as his chief economist and economic advisor during the Obama administration. His position would require Senate confirmation, and his chances increased when the Democrats secured a 51-seat majority.
Halfway through his term as president, Biden has appointed several new people to senior positions. The White House is holding a party on Wednesday to give thanks Outgoing White House Chief of Staff Ron Klein and welcome Zenits to the position.
Zients previously served as the Covid-19 Response Coordinator in the Biden White House and an economic advisor to the former president. Barack Obama.
The sources said that Brian Daisy, director of the National Elections Committee in the current White House, is expected to leave soon. In a call Tuesday evening to review Wednesday’s meeting of the White House Competition Council, which Deese chaired, NTIA Director Alan Davidson praised his work and thanked him for his service to the administration.
Deese did not respond to a request for comment.
The White House also considered Sylvia Matthews Burwell president of American University. Gene Sperling, Senior White House Counsel and Former Director of the NEC; and Bharat Ramamurti, the current NEC Deputy Director, for the role of NEC Director.