Powell is expected to continue the policies of current Chair Janet Yellen, unwinding historically-low interest rates in a slow way that won’t disrupt the market.
U.S. President Donald Trump has picked Jerome Powell – a member of the Federal Reserve Board appointed by former President Obama in 2012 – as the replacement for Fed Chair Janet Yellen.
“Today is an important milestone on the path to restoring economic opportunity to the American people,” said Trump. “He’s strong, he’s committed and he’s smart, and if he is confirmed by the Senate, Jay will put his considerable talents and experience to work leading our nation’s independent central bank.”
As noted by CNBC, During Yellen’s time as Federal Reserve Chair, she presided over big increase in stock prices, low interest rates, and the slow but steady unwinding of massive monetary stimulus programs. Interest rates went up four times under her leadership, and Powell is expected to implement similar policies, as he voted in favour of them as a fed board member.
Trump called Yellen “a wonderful woman who’s done a terrific job,” adding, “We have been working together for 10 months and she is absolutely a spectacular person. Janet, thank you very much. We appreciate it.”
Powell said,“I’m both honored and humbled by this opportunity to serve our great country,” adding, “If I am confirmed by the Senate, I will do everything within my power to achieve our congressional assigned goals of stable prices and maximum employment.”
Watch: Video of the Federal Reserve Chairman announcement below:
The market is expected to react well to the news of Powell’s selection.
Photo – YouTube