As President Biden struggles to improve the economy, a holdover from the Trump administration who plays a pivotal role in shaping the direction of the US financial system may pose political challenges for the White House.

Federal Reserve Chairman, Jerome Powell, who is currently dealing with the aftermath of banking failures that have caused anxiety in the financial market, recently decided to increase interest rates.

The Fed is often described by the White House as an “independent” entity. President Biden defied opposition from progressive politicians and renominated Jerome Powell, a Republican, to his position as Federal Reserve Chairman when he assumed office.

However, in an effort to emphasize the Fed’s autonomy, officials have been striving to create distance between Biden and Powell, the Hill reported.

Nevertheless, some political analysts argue that if Powell’s actions unsettle financial markets and Americans continue to encounter high prices for goods and elevated interest rates on borrowing for homes and cars, there may be limits to how much separation Biden can maintain while on the campaign trail.

Written by staff