“In the years since the global financial crisis ended, our economy has made substantial progress toward full recovery,” Powell said during the ceremony with Trump. “By many measures, we are close to full employment, and inflation has gradually moved up toward our target.”
Powell’s nomination to replace Janet Yellen, who remains Fed Chair until February 2018, must be permitted by the US Senate. Mike Crapo, chairman of the Senate Banking Committee, said that he intended to have Powell affirmed by the end of this year.
The central bank’s new president shared little of his thought about the changes he would seek at the Fed; instead, he asserted to hunt the targets planned for the Fed by Congress.
“Inside the Federal Reserve, we understand that monetary policy decisions matter for American families and communities,” Powell said. He also added to share the sense of mission and to have the mandate to make decisions with objectivity, based on obvious corroboration and in the perennial tradition of monetary policy independence.
Of course, not all investors expected for an incredible change. Powell was widely anticipated by analysts that he would continue on the way of raising the policy interest rate gradually established by Janet Yellen. Luke Tilley, chief economist at money manager Wilmington Trust Corp, appraised that Powell was a safe choice for continuity and “probably the least amount of disruption you’d expect from any of the picks”.
64-year-old Jerome Powell has become Fed governor since 2012, supported Yellen’s plan of only one-by-one raising the U.S. key interest rate against the backdrop of strong employment increase, and has made only trivial modifications to the raft of banking regulation after the financial crisis in 2008.
Kevin Cummins, an economist at NatWest Markets in Stamford, stated his dovish prediction about Powell and judged that the new Fed Chair would continue to “plow forward”. He also forecasted that interest rates might be raised with a sluggish progress in the forthcoming years.
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