Lael Brainard Appointed as Top Economic Adviser to President Biden Amid Debt Ceiling Crisis

President Joe Biden has appointed Lael Brainard of the Federal Reserve as his top economic adviser, the White House announced Tuesday. Brainard will serve as director of the National Economic Council, replacing Brian Deese who is stepping down from the position.

Brainard’s new role does not require Senate confirmation and she will be tasked with helping Biden implement key elements of his economic agenda. This includes pandemic relief, infrastructure, computer chip manufacturing and tax, climate and health care bills.

Treasury Secretary Janet Yellen sent a letter to congressional leaders last month, warning that the U.S. had hit the $31.4 trillion debt limit. She urged Congress to act as soon as possible to address the debt ceiling and avoid the government’s first ever credit default, which would have catastrophic economic consequences.

According to a report from the nonpartisan Congressional Budget Office, the U.S. could be at risk of defaulting as soon as July if Congress doesn’t move to raise or suspend the debt limit. The CBO estimates that the government will run out of borrowing authority by the end of July, and will be unable to pay its bills unless Congress acts.

Brainard’s appointment comes at a critical time for the U.S. economy, as the Biden administration and Republican lawmakers are in a standoff over how to address the debt ceiling. It remains to be seen how Brainard’s expertise and experience will help the White House navigate this difficult situation.