Powell remains: what will happen to the housing market, cryptocurrencies and inflation

The man who helped save the US stock market from the chaos of the pandemic will keep his job for another four years.

News that US President Joe Biden has nominated Jerome Powell for a second term as head of the Federal Reserve System (the Fed, which acts as the central bank) was greeted with relief on Wall Street. Over the past two turbulent years, the Fed's rate cuts and economic support measures have helped the US avoid a protracted recession. For this, Powell is praised by both novice and professional investors.

In the near future, the head of the Fed, along with Vice Chairman Lael Brainard, will face new problems. These are rising inflation exacerbated by supply disruptions and the need to eventually reduce the amount of financial support provided during the worst periods of the pandemic.