What Brainard’s departure means for the Fed, bank policy and her career

By Kyle Campbell

When Vice Chair Lael Brainard leaves the Federal Reserve next week to become the White House’s top economist, she will also hand off leadership duties on several key initiatives at the central bank….On Tuesday, the White House announced that Brainard would become its next director of the National Economic Council. That same afternoon, she submitted her resignation from the Fed board, effective on or around Feb 20…. Karen Petrou, managing partner at Federal Financial Analytics, said this is especially true of the committee on economic and monetary affairs, as well the committee on payments, clearing and settlement. Brainard was the head of both. With Waller sitting on the monetary affairs committee and Gov. Michelle Bowman sitting on payments, Petrou said the new chair appointments could influence how the Fed looks at key issues. Both Waller and Bowman were appointed by President Donald Trump. “In terms of seniority, the desirable committees of payments and settlements and monetary affairs could be led by two Republican governors, Waller and Bowman,” Petrou said. “They don’t always agree with Brainard, but the Fed is very institutional.”