Table of Contents

Who Is Lael Brainard?

Lael Brainard is director of the National Economic Council

By Mark Kolakowski

Updated June 04, 2023

Reviewed by

Erika Rasure

Fact checked by

Skylar Clarine

Key Takeaways

Lael Brainard is director of the National Economic Council, a position she has held since February 2023.
Brainard previously was the Fed vice chairman, having been confirmed by the U.S. Senate in April 2022.
Brainard earlier had been mentioned as a leading candidate to replace Jerome Powell as Fed chair.
Brainard held a variety of federal posts under Presidents Bill Clinton and Barack Obama.
Prior to that, she was a consultant at McKinsey & Co. and an economics professor at the Massachusetts Institute of Technology’s (MIT’s) Sloan School of Management.

Lael Brainard with President Joe Biden.
Alex Wong / Getty Images

Early Life and Education

The child of an American diplomat, Brainard grew up in East Germany and Poland during the Cold War. She received a B.A. with university honors from Wesleyan University in 1983. She received an M.S. and a Ph.D. in economics in 1989 from Harvard University. She was awarded a National Science Foundation Fellowship and a White House Fellowship.

Notable Accomplishments

Prior to joining the FRB, Brainard was undersecretary of the U.S. Department of the Treasury from 2010 to 2013 and counselor to the secretary of the Treasury in 2009. During this time, she also was the U.S. representative to the Group of 20 (G-20) Finance Deputies and the Group of Seven (G-7) Deputies, and a member of the Financial Stability Board. She was given the Alexander Hamilton Award for her service.

G-7 vs. G-8

The Group of Seven (G-7) became the Group of Eight (G-8) in 1998, when Russia joined the United States, the United Kingdom, Germany, France, Japan, Italy, and Canada as a member of this association of leading developed nations. However, Russia was suspended in 2014 after annexing the Crimean peninsula from Ukraine, making the association effectively the G-7 again.

From 2001 to 2008, Brainard was vice president and the founding director of the Global Economy and Development Program and held the Bernard L. Schwartz Chair at The Brookings Institution, where she built a new research program that examined global economic challenges. The Brookings Institution, founded in 1916, is a nonprofit public policy research organization, or think tank, based in Washington, D.C.

Brainard was the deputy national economic advisor and deputy assistant to then-President Bill Clinton. She also was President Clinton’s representative to the G-8 and the G-7. From 1990 to 1996, Brainard was assistant and associate professor of applied economics at the Sloan School of Management of the Massachusetts Institute of Technology (MIT). She has published numerous articles on economic topics and is the editor or co-editor of several books.

Prior to her teaching position at MIT Sloan, Brainard worked in management consulting at McKinsey & Co.

In 2019, Brainard was one of five recipients of the Centennial Medal awarded by the Graduate School of Arts and Sciences (GSAS) at Harvard University. The Centennial Medal is the highest honor bestowed by Harvard’s GSAS.

The Brookings Institution, where Brainard formerly worked, has more than 300 scholars affiliated with it, and its research topics include, foreign policy, economics, development, governance, and metropolitan policy.

Director of the National Economic Council

In mid-February 2023, President Biden named Brainard to head the White House’s economic policy team as director of the National Economic Council. She succeeded Brian Deese in this role.

Brainard is viewed as less restrictive on monetary policy than some of her Fed colleagues at a time when the Biden administration is hoping to control inflation, which was been rampant in recent quarters.

How Is the Director of the National Economic Council Selected?

The director of the National Economic Council, serving as the chief economic advisor in the White House, is appointed directly by the U.S. president.

How Is the Vice Chair of the Federal Reserve Board Chosen?

The U.S. president nominates a vice chair from among the members of the Federal Reserve Board. The nomination is subject to confirmation by the Senate, and the vice chair serves for a term of four years.

What Are the Responsibilities of the Federal Reserve Chair?

The chair of the Federal Reserve Board serves as the public face of the Federal Reserve Bank. The chair is the active executive officer of the Federal Reserve Board. The chair’s main responsibility is to carry out the mandate of the Fed: to promote the goals of maximum employment, stable prices, and moderate long-term interest rates.

What Does It Mean to Describe an Economic Policymaker as "Dovish"?

A dove is an economic policy advisor who promotes monetary policies that usually involve low interest rates. Doves tend to support expansionary monetary policy because they value economic indicators like low unemployment over keeping inflation low. If an economist suggests that inflation has few negative effects or calls for quantitative easing, then they are called a dove or labeled as dovish.

The Bottom Line

With Brainard now occupying the chief economic advisor position in the White House, it remains to be seen how she will help to guide and implement President Biden’s economic agenda. Brainard is viewed as being more dovish than Powell, meaning she is less concerned about inflation and less likely to support an increase in interest rates.

Article Sources

Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

The White House (Biden Administration). “President Biden Announces Key Members of His Economic Team.”
Board of Governors of the Federal Reserve System. “Lael Brainard Submits Resignation as Vice Chair and a Member of the Federal Reserve Board, Effective on or Around February 20, 2023.”
The White House (Biden Administration). “President Biden Nominates Jerome Powell to Serve as Chair of the Federal Reserve, Dr. Lael Brainard to Serve as Vice Chair.”
Congress.gov, U.S. Congress. “PN1529—Lael Brainard—Federal Reserve System.”
Federal Reserve History. “Lael Brainard.”
G7 Germany. “History of the G7.”
The Brookings Institution. “About Us.”
Harvard University, Graduate School of Arts and Sciences. “Fearless Advocates, Trusted Leaders: 2019 Centennial Medals.”
The White House (Obama Administration Archives). “National Economic Council (NEC).”
Board of Governors of the Federal Reserve System. “Board Members.”
Board of Governors of the Federal Reserve System. “What Is the Purpose of the Federal Reserve System?”
Federal Reserve Bank of Kansas City. “Understanding Hawks and Doves.”

Open a New Bank Account

×

The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.