Powell confirmed as next Federal Reserve chair

Jan 25, 2018, 01:43
Powell confirmed as next Federal Reserve chair

THE United States Senate yesterday confirmed former investment banker Jerome Powell as head of the Federal Reserve, putting President Donald Trump's pick in a role of enormous influence in the world's largest economy. Elizabeth Warren of MA have raised concerns about whether he would be too aggressive in dialing back post-financial crisis reforms.

Powell will inherit an economy exhibiting strong economic growth, which now stands at three percent, coupled with low inflation and a labour market where the number of jobless claims has recently reached a almost 45-year low.

He has lauded the central bank's patient approach, led by Yellen, in gradually raising interest rates and slowly unwinding the $4.5 trillion balance sheet that the Fed amassed to support the economy after the crash. The bank would need to minimise unemployment while managing inflation.

The upper chamber approved the nomination in a 84-13 vote.

There is also the concern that the stock market, which has been soaring to record highs, could get thrown into reverse if investors begin to worry about rising interest rates.

Powell is a proponent of financial deregulation but has suggested he supports numerous provisions codified in the Dodd-Frank Wall Street Consumer Protection Act of 2010.

"[Powell] has served as a steady voice and a thoughtful leader" at the Fed, said Senate Majority Leader Mitch McConnell in a floor statement before bringing Powell's confirmation up for a vote. Before joining the Fed, Powell was a visiting scholar at the Bipartisan Policy Center.

As NPR's John Ydstie reported last November when Trump tapped Powell, it was "the first time in decades that a president hasn't reappointed a chief of the central bank for a second term".

But the tax cut could also force the Fed to raise rates faster if it stimulates the economy further. From 1997 through 2005, Mr. Powell was a partner at The Carlyle Group.

A Princeton University graduate, Powell was a lawyer in NY before he joined the investment bank Dillon Reed & Co.in 1984.

Powell was an undersecretary of the Treasury under former President George H.W. Bush.

YOU MIGHT ALSO LIKE
  • Montana Leads US Fight For Net Neutrality

    Montana Leads US Fight For Net Neutrality

    According to the Times , several trade groups said they were monitoring Bullock's order and were considering lawsuits. Schaake sent the letter to the FCC ahead of the watchdog's planned publication of official rules on net neutrality .
    EPL: Pogba seeks pay rise ahead of Sanchez move to Manchester United

    EPL: Pogba seeks pay rise ahead of Sanchez move to Manchester United

    The midfielder went on to make 63 appearances for the club in all competitions, scoring 13 goals. Today, Alexis Sanchez has arrived for his medical...
    Saudi-led coalition to give $1.5 bln in Yemen aid

    Saudi-led coalition to give $1.5 bln in Yemen aid

    The Saudi ambassador also said that an airdrome will be prepared in Marib to secure the arrival of aid provided by all global organisations.
  • One dead, multiple victims wounded in Kentucky high school shooting

    One dead, multiple victims wounded in Kentucky high school shooting

    A 16-year-old opened fire in the cafeteria, police said, wounding a 15-year-old girl who was airlifted to a Dallas hospital. Several churches and schools will hold prayer vigils and services to pray for the victims to cope with the tragedy.
    Zlatan Ibrahimovic, Romelu Lukaku bid farewell to Henrikh Mkhitaryan after Arsenal move

    Zlatan Ibrahimovic, Romelu Lukaku bid farewell to Henrikh Mkhitaryan after Arsenal move

    He has a good team attitude as well. "He is very versatile and it should help us going forward". Mkhitaryan also lifted the League Cup and Community Shield in his stint at Old Trafford.
    Iraq to hang German woman for belonging to 'Islamic State'

    Iraq to hang German woman for belonging to 'Islamic State'

    The same month, a German teenage girl suspected of joining IS was arrested in Mosul, according to Germany's justice department. However, it is believed that Iraq is now holding more than 1300 foreign women and children following the operation in Mosul.
  • Apple becomes Laureate partner for the Malala Fund

    Apple becomes Laureate partner for the Malala Fund

    Apple continues to stress the need of education widespread amongst the masses for a brighter and more progressive future. Apple is becoming the fund's first Laureate partner and the company's CEO Tim Cook will join its leadership council.
    People in path of winter storm urged to prepare for snow

    People in path of winter storm urged to prepare for snow

    The storm system will swirl away from Colorado overnight and the snow will end across the eastern plains after midnight. Anyone who must travel on Monday is encouraged to use extreme caution and give themselves plenty of extra time.

    Amiibo-like PlayStation figures are coming this March

    These highly detailed figurines stand at 10cm tall and will have multiple series that will release in the future. A new range of PlayStation characters will be offered under the name Totaku (pronounced Toe-Tak-Oo).
  • Snapchat-Facebook Merger Would Permit Story Sharing on Other Apps

    Snapchat-Facebook Merger Would Permit Story Sharing on Other Apps

    But Snapchat is now adding a dedicated sharing feature that will let you fling your favourite Stories to absolutely anyone. Snapchat has been suffering from declines in certain metrics that indicate fewer members are using the app every day.
    Rory McIlroy leads the plaudits to Abu Dhabi champion Tommy Fleetwood

    Rory McIlroy leads the plaudits to Abu Dhabi champion Tommy Fleetwood

    Rory McIlroy shot 70 to finish tied for third at 18 under, his eighth top-five finish in nine Abu Dhabi starts. Fleetwood fired a final-round 65 to finish 22 under par, two shots clear of fellow Englishman Ross Fisher .
    Amazon Launches Checkout-Free Store

    Amazon Launches Checkout-Free Store

    They can order in-store via touchscreen displays or online, but then they'd go to the drive-thru to pick up their packages later. After a year of trial by the company's employees, Amazon opened its first surveillance-based store with no checkout in Seattle.
popular