Biden reappoints Jerome Powell as Fed chairman at a critical time for the economy

President Biden has chosen to keep Jerome Powell in place for a second term as Federal Reserve chairman — a move that signals continuity with the central bank's policies at a time when the economy faces critical challenges, including surging inflation

Biden also nominated Fed governor Lael Brainard to serve as Vice Chair. Brainard had been seen as a leading contender to replace Powell.

Under Powell and Brainard, who's currently a Fed governor, the Fed has kept interest rates near zero despite the current high prices for all kinds of goods, as it focuses on returning the economy to full employment and as policymakers argue inflation will prove temporary.

"Powell and Brainard share the Administration's focus on ensuring that economic growth broadly benefits all workers," the White House said in a statement.

Biden's pick to stick with Powell will likely to reassure financial markets, despite opposition from some progressive members of the president's own party.

Powell, a Republican, was originally appointed to the Fed's governing board by former President Barack Obama, and elevated to the chairman's post by former President Donald Trump.