Jerome Powell: You’re hired as the next Fed Chair
President Trump has announced that Jerome Powell will take over from Janet Yellen as the next Chair of the US Federal Reserve starting February 2018.
In what has sometimes felt like an episode of The Apprentice, Donald Trump has bucked the trend of Presidents reappointing Fed chairs inherited from their predecessors. Instead he’s opted for Jerome “Jay” Powell, giving him an eight-year term as Federal Reserve Chair starting February 2018.
Powell appears to be very similar to Yellen in terms of thinking and voting. So, from a monetary policy perspective, the directives from the Fed’s leadership are unlikely to alter markedly. Where he differs from Yellen is on banking regulation. Here he hints at a more relaxed attitude, suggesting in early October that “there is certainly a role for regulation, but regulation should always take into account the impact that it has on markets - a balance that must be constantly weighed. More regulation is not the best answer to every problem”.
ING's chief international economist, James Knightley considers what we can expect from Mr Powell in the years ahead. Read his article on think.ing.com.