President Joe Biden has nominated Jerome Powell for a second term as chairman of the US Federal Reserve.
Mr Powell is expected to continue in the position for another four years, which entails controlling inflation and regulating the financial sector.
Former President Donald Trump nominated him, and he began his first term in 2018.
During the epidemic, the 68-year-old Republican has been hailed for his economic management.
Lael Brainard, the second front-runner, was favored by progressives on President Biden’s Democratic Party’s left.
They accuse Mr Powell of failing to do more to combat climate change and poverty, as well as weakening financial institution regulation.
Ms. Brainard, who has served on the Federal Reserve’s board of governors since 2014, has been nominated as vice chair.
“While there’s certainly more to be done, we’ve made amazing progress over the last 10 months in putting Americans back to work and getting our economy rolling again,” President Biden said in announcing the selections.
“That achievement is a credit to the economic agenda I’ve pursued, as well as the courageous action taken by the Federal Reserve under Chair Powell and Dr. Brainard to help us navigate through the greatest downturn in modern American history and put us on the road to recovery.”
Before Mr Powell and Ms Brainard take up their positions in February 2022, their nominations must be ratified by the Senate.
Mr. Biden expressed confidence in Mr. Powell and Ms. Brainard’s ability to manage inflation, but he also stated his opinion that immediate action is required to address climate change and financial system concerns.
President Biden’s administration is under increasing pressure as prices for everyday products continue to climb, eroding average Americans’ purchasing power.
Consumer price inflation hit 6.2 percent last month, defying expectations, including those of Mr Powell, that it would rapidly return to normal once the economy reopened.
The Federal Reserve is in charge of regulating inflation, but according to a CBS survey released this weekend, the issue is impacting the president’s personal poll ratings.
Having an independent and competent Federal Reserve, according to US Treasury Secretary Janet Yellen, is “essential to navigating this volatile period.”
Following the announcement, US equities started higher, which was generally in line with expectations.
After President Trump’s more politicized approach, the choice of Mr Powell, a former private equity lawyer and Republican, by a Democratic president, symbolizes a return to the conventional, non-partisan procedure to appointing the Fed chair.
It also provides policy consistency at a time when interest rate strategy is hotly debated.