President Donald Trump on Thursday (Nov 2) exploited Fed Governor Jerome Powell to become leader of the US central bank, promoting a soft-spoken centrist to replace Janet Yellen after her term expires in February 2018. Powell, made to the Fed board in 2012 from then-President Barack Obama, emerged as Trump's choice by a five-person record of possible nominees that included Yellen as well as other people who would have represented a sharp change in monetary policy.
In a statement at the White House, Trump called Powell a powerful, dedicated and clever leader. He has proved to be a consensus builder for its sound financial and monetary policy that he believes in ... according to his album I am confident that Jay has the leadership and wisdom to direct our market, Trump said because the Fed nominee looked on
The decision, which finished with unusually people, months-long hunt, offers a little worlds, allowing Trump to select a new Fed chief while obtaining continuity using a Yellen-run central bank that has kept the economy and markets onto an even keel. Powell, a 64-year-old attorney and former investment banker, has backed Yellen's general direction on monetary policy and, in the past few decades, shared her concerns which weak inflation warranted a continuing cautious approach to increasing interest prices.
In June, he laid out both a defense of the Fed's gradualist course plus also a critique of these, including a number of his rivals for the Fed's top job, who contended that the central bank had significantly increased the chance of high inflation and other issues.
Trump on several occasions has stated he would prefer rates to remain low, a position at odds with some of those that had been on his shortlist for the Fed job, particularly Stanford University economist John Taylor and former Fed Governor Kevin Warsh. Top White House economic advisor Gary Cohn also was a contender.