And the winner is…Jerome Powell!

President Joe Biden nominated current Federal Reserve Chairman Jerome Powell to serve another term as the man in charge of the Fed.

The list was dwindled down to two candidates: current Federal Reserve Chairman Jerome Powell and current Federal Reserve Governor Lael Brainard.

Or, as the Wall Street Journal editorial board named them: “Tweedledum and Tweedledee.”

Well, that isn’t very nice, is it?

But then again, it’s a tough life for a Fed Chairman. It’s a job, and someone must do it.

Following Biden’s decision to keep him in his current job, there are several challenges facing Jerome Powell.

In addition to the Fed’s main objective of keeping inflation low and maximum employment, the Fed must regulate the banking industry, which after the dark days of the 2008 Financial crisis, has become a big deal.

There are even outstanding questions about how the Fed is going to tackle climate-related issues, and the hot new agenda item: cryptocurrencies.

Coming to a bank near you…Fedcoin! Because hey, even the Fed wants a piece of that crypto action.

So where does Powell stand on these issues? Well, let’s recap the differences between him and Lael Brainard, the Fed Chairman runner-up.

Monetary Policy

On monetary policy, the two candidates weren’t too far apart. Both supported easy money, and Brainard supported every monetary policy decision made by the Federal Open Market Committee.

However, Brainard was keener to keep monetary easing until the labor market returns to normal.

In September, she said, “I see no reason employment should not reach levels as strong or stronger than before the pandemic,” she said in September.

Banking Regulation

Our two contestants differed glaringly on how to regulate large banks.

According to Yahoo Finance, Brainard voted against several of the Powell-era rollbacks in bank rules.

She said, “I am concerned that we may be whittling away at that core resilience of our financial system.”

Brainard dissented on a “tailored approach to bank liquidity requirements and unsuccessfully advocated for temporarily raising bank capital requirements prior to the pandemic,” according to Yahoo.

Cryptocurrency

A trendy topic has become how the world’s central banks intend on regulating cryptocurrencies. There is even talk amongst the Fed brass of creating their own Fed coin.

Hey, I mean, China has already done it, why not the U.S.? Am I right?

As of now. Powell is taking a non-committal approach to the idea and wants to study the idea more. Brainard appears to be more open to the idea given her past statements.

Now that President Biden has made his decision known, Lael Brainard is expected to become vice-chair of the Fed…but as always, the big dog remains Jerome Powell.