Author Topic: Trump taps Powell to be next chairman of the Federal Reserve  (Read 464 times)

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Online Rudi Jan

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Trump taps Powell to be next chairman of the Federal Reserve
« on: November 02, 2017, 01:19:35 PM »
Trump taps Powell to be next chairman of the Federal Reserve

Published: Nov 2, 2017 4:55 p.m. ET

Jerome Powell is currently a governor on the central bank

By Greg Robb

President Donald Trump on Thursday nominated Jerome Powell to head the Federal Reserve, putting a non-economist and former private equity executive in charge of the most senior economics policymaking position in the world.

Shortly after 3 p.m., Powell and Trump emerged from the Oval Office and walked together into the Rose Garden, ending months of speculation over who Trump would select to run the central bank.

Trump said that Powell is “strong, committed, and smart” and will provide the leadership to help sustain the economy’s strong performance this year.

In a brief statement, Powell said he would work to make sure the Fed “remains vigilant and prepared to respond to changes in markets and evolving risks.” He highlighted the longstanding tradition of Fed monetary policy independence.

Powell has been on the Fed board of governors since 2012 and has a reputation of being a centrist and quiet team player. As a result, Wall Street thinks Powell represents continuity on monetary policy.

Powell has never dissented from any decision made by the Janet Yellen-led Fed, whose term as head of the central bank expires in February. He’s agreed to lift interest rates four times in five years and says he expects interest rates to move on a gradual upward trajectory.

He didn’t start out a front-runner as Trump began to consider his options. Powell’s name wasn’t even listed as a potential candidate by the political betting site Predictit until late September.

Powell, 64, is a lawyer by training and would be the first Fed chair without a Ph.D. in economics in thirty years. Fed insiders say that Powell has not been a thought-leader in discussions on monetary policy. That said, he’s known for being well-versed in markets.

He worked at the Treasury Department under the elder Bush and then became a partner at the Carlyle Group hedge fund. He is one of the richest members of the Fed board, with net worth listed in 2014 between $21 million and $72 million.

Powell is seen as having a lighter touch than Yellen on bank regulation.

Powell is not popular with conservative Republicans after he pushed the GOP to end the standoff with President Barack Obama over raising the debt ceiling in 2011. The Obama White House argued that refusing to raise the debt limit would damage the economy, and Powell, then a visiting scholar at the Bipartisan Policy Center, agreed.

Twenty-three Republicans voted against his nomination to a full term at the Fed in 2014.

House Financial Services Chairman Jeb Hensarling — who doesn’t get to vote on the nomination — typified the muted response from conservatives.

“Although I am not well acquainted with Mr. Powell and advocated on behalf of another candidate, I congratulate him on his nomination and look forward to working with him should he be confirmed by the Senate. If confirmed, it is my hope that he will break from the past and lead the Federal Reserve to adopt a more transparent and more predictable monetary policy strategy and rationalize a regulatory agenda that has seen big banks become even bigger while community banks have become fewer,” he said.

R ~ '...without a Ph.D. in economics'. That is a plus considering what a mess the jew academics in the Federal Reserve has made (deliberately) of the economy, that and being the first gentile in that (((office))) in decades. Of course I doubt he will be able to change the current agenda to rob the American people of the little they have left as quickly as possible.
Suspend all belief. Get the facts ~ Rudi
No one rules if no one obeys ~ Lao Tzu