After a suspenseful period, President Donald Trump chose Jerome Powell to lead the Federal Reserve on Thursday. Through this decision, Janet L. Yellen loses the chance to continue her work for a second term. The presidential expectations from the new Fed Chairman regard a monetary policy that continues to adapt to the growth of national economy.
Jerome Powell Is the First Fed Chairman in Decades with no Ph.D. in Economics
On Thursday, Donald Trump announced his nomination in the White House Rose Garden. He expressed his admiration for Powell’s commitment to his work, and he claimed he has confidence in his new choice to create the best environment for the Federal Reserve.
Powell has been a member of the Fed’s board for five years now. His vote throughout the years has always tipped the balance in favor of a slow rise in interest rates. He also was an assertive supporter of selling-off the assets the Fed purchased during the great recession. All these projects were the proposals of the former chair of the Federal Reserve, Janet Yellen.
On the other hand, Powell is the first Fed Chairman with no Ph.D. in Economics. As a result, his background in economics lacks a firm grasp of core concepts. For instance, he has been a vocal skeptic regarding the extreme measures the Fed took to control the financial situation after the country left the great recession behind.
A Republican himself, Powell will now have the chance to bring some of Trump’s presidential goals to fruition. The President aspires to see the financial industry unchained from restrictive regulations in order to allow the free market to follow a loose course.
There Is Little Known about Powell’s Vision for the Future of the Federal Reserve
The nominee offered few details on what his new approach looks like in the Rose Garden. He mentioned the remarkable recovery the economy recorded since it exited the financial crisis. The banks now are in better shape than ever.
“I will continue to work with my colleagues to ensure that the Federal Reserve remains vigilant and prepared to respond to changes in markets and evolving risks.”
As Fed Chair, Powell will occupy a seat which is said to be the second most powerful one within the government. His main responsibilities will be to adapt the interest rates to key economic indexes in order to better guide millions of Americans.
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