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Here's what a Biden presidency means for the Federal Reserve

Yahoo Finance's Brian Cheung joins Kristin Myers to break down what a Biden victory will mean for Jerome Powell and the rest of the Federal Reserve.

Video Transcript

KRISTIN MEYERS: Well, let's talk now about the Fed, and what a Biden presidency could mean for Fed policy, and Fed Chair Jay Powell. So for more, we want to bring on our Fed whisperer, Yahoo Finance's Brian Cheung. Hey, Brian.

BRIAN CHEUNG: Hey, Kristin. Well as the results of the election are shaking out, it does appear that if it is a victory for Joe Biden for the White House, in addition to a Senate victory over the-- rather a GOP victory over the Senate, as well understand shaking out in January.

That could also spell a victory for one more person, that being Fed Chairman Jay Powell as a possible renomination once his term expires as Fed chair. That's in February of 2022. Now keep in mind that the reason for this is because he seems to appease both Democrats and Republicans down in Washington, DC. He is a Republican by affiliation who was nominated by Obama for a position at the Federal Reserve in 2012.

At the time, he got a 74 to 21 vote in Fed chair. When he was nominated for Fed chair in 2018, he had an even more bipartisan vote, 84 to 13. Unusual, especially in the times of the Trump administration.

Since becoming Fed chair, he's also made a concerted effort to really build relationships on Capitol Hill. You can see his calendars online. There's scatterings of mentions of meetings with members of Congress on both sides.

And he also appeared to get applause from Republicans in his response to the COVID-19 crisis, with the Fed expanding its Fed balance sheet in addition to lowering interest rates. Obviously of course, those 13 liquidity facilities.

He even got a bump from President Trump himself we noted back in May, after repeated months of bashing last year, that Jay Powell was quote "the most improved player." So it does seem like any bite administration that can be moderated by a Senate GOP, he could be the best person with the least obstacles to getting renominated in 2022.

KRISTIN MEYERS: Hey Brian, really quick, are there any other names that have been floated out to replace Jay Powell?

BRIAN CHEUNG: For right now, we don't really know that Trump-- rather, the Biden transition team is still being put together right now. But it's important remember that there are still two other vacancies on the Fed board.

There is up to seven members that could be part of that. And when you consider that Lael Brainard, a current governor, might be tapped to a position at the Treasury, that could mean the Biden administration would have not just the Fed chair, but also three other Fed Board vacancies to be thinking about. But again, that's something that will really get a better picture once that transition team is in place.

KRISTIN MEYERS: All right, Yahoo Finance's Brian Cheung. Thanks so much.