What could nomination of Lael Brainard mean for Wall Street?

Fed Governor Lael Brainard is getting closer to a key banking position as U. S. President Joe Biden studies who will chair the central bank and who will specifically supervise banks.

Even without getting the Chair’s position, Brainard can be a major influence on banks. If she is not nominated as Chair, she will remain as a good bet to be named the vice chair for supervision.

There are likely three areas where her influence would be most felt: Climate change, central bank digital currency, and getting banks to raise capital during prosperous times.

Federal Reserve Governor Lael Brainard’s increased influence ahead likely means substantial changes and challenges for the American banking system.

Brainard is considered a progressive who favors tighter hold on financial institutions, particularly the Wall Street powerhouses.

Brainard’s name came into focus last week when Senator Elizabeth Warren called current Chairman Jerome Powell “dangerous” because of the Fed’s move to loosen bank regulations.