President Joe Biden is right to nominate Federal Reserve Chair Jerome Powell for a second term. No disrespect to Lael Brainard, who will be nominated as vice chair instead. Both are eminently capable central bankers.

But two good reasons argued for Powell: The need for continuity, and the need to resist politicising the Fed now when its independence might come into question.

The Joe Biden administration has no quarrel with the way the Fed has conducted monetary policy during Powell’s first term. Challenged by the Covid-19 pandemic, the Fed maintained strong support for demand and kept financial markets functioning well — neither of which should be taken for granted.

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