In a major development, US President Donald Trump appointed Jerome Powell to serve as chairman of the Board of Governors of the US Federal Reserve on Thursday. Jerome Powell will take over from the present chairwoman Janet Yellen once her term expires. “If confirmed by the Senate, Powell would become chairman when Yellen’s term ends 3 February,” Associated Press reported.
President Donald Trump made the announcement in an afternoon ceremony held in the White House Rose Garden. On nominating Powell as chairman, Trump said, “Today is an important milestone on the path to restoring economic opportunity to the American people,”. The president said the Fed requires “strong, sound and steady leadership” and Jerome Powell “will provide exactly that type of leadership.”
Donald Trump on Jerome Powell: “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,” Trump added.
Donald Trump on Janet Yellen: Janet Yellen is “a wonderful woman who’s done a terrific job,” Donald Trump said. “We have been working together for 10 months and she is absolutely a spectacular person. Janet, thank you very much. We appreciate it.”
6 facts to know about the next Federal Reserve chairman Jerome Powell:
- Jerome Powell is a Princeton University graduate with a law degree from Georgetown, he had worked at the investment bank Dillon, Read & Co. and later he served as a senior Treasury official under President George H. Washington Bush.
- Powell was also a partner with Carlyle Group, a giant in the private equity business, from 1997 through 2005. Jerome Powell joined Federal Reserve board in 2012 after being nominated by then President Barack Obama.
- Powell’s years in investment management have made him one of the wealthiest members of the Fed’s board. According to his latest financial disclosure form, his assets were valued at a range between $19.7 million and $54.9 million, Associated Press reported.
- Jerome Powell is not a trained economist, neither he had a published or produced history of research. Powell has built a fortune as an investment manager. While in contrast to Powell, his predecessors Bernanke and Yellen were nationally distinguished economists before their Fed chairmanships, with decades of research, papers and books attached to their names.
- In a five year term on US Fed’s board of governors, Powell has specialised himself in areas from banking regulations to the US payments system along with schooling himself in monetary policy.
- Jerome Powell often referred as Jay, has maintained a low profile on the Fed’s board. Like for example, he has refrained himself from giving speeches on interest rate policy. Jerome Powell is also an avid music listener.