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Biden sticks with Powell as Fed Chair amid rising inflation

Jon Lieber, head of Eurasia Group's coverage of political and policy developments in Washington, shares insights on US politics:

Why did President Biden renominate Jay Powell to be the chairman of the Fed, and who's his No.2, Lael Brainard?

Well, Powell by all accounts has done a pretty good job of managing the Fed through the coronavirus pandemic. He dusted off the playbook, first pioneered by Chairman Bernanke during the financial crisis, and he's largely continued the relatively easy monetary policy of his predecessor at the Fed, now Treasury Secretary, Janet Yellen. With inflation growing the way it has over the last several months, Biden now owns the policies of the Fed and is essentially endorsing what Powell has been doing and giving Powell the political cover to continue to keep rates low for longer, or as many people expect, raise them slightly over the next 12 months in order to fight inflation.

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What We're Watching: Chinese tennis star reappears, Bulgarian president re-elected, US Fed chief renominated

Is Peng Shuai really safe? The Women's Tennis Association has said that Chinese tennis star Peng Shuai's video call with the International Olympic Committee (IOC) on Sunday does not sufficiently address concerns about her safety and whereabouts. Peng disappeared from public life several weeks ago after accusing former Chinese Vice-Premier Zhang Gaoli of sexually assaulting her. Over the weekend, Chinese state media published photos of her at a restaurant and a tennis tournament, and she held a half-hour call with the IOC in which she said she was fine and asked for privacy. But no one can be sure that Peng wasn't coerced into making those statements. The WTA, which has threatened to pull tournaments out of China, continues to call for a full investigation into Peng's allegations, and the story is adding fresh impetus to calls for nations around the world to boycott the upcoming Beijing Winter Olympics.

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