Donald Trump has named Jerome Powell as the man he wants to run the Federal Reserve.
Powell made a fortune as an investor before joining the world’s biggest central bank as a governor. He pledged to guard an economy not long recovered from the global financial disaster nearly ten years ago.
“While post-crisis improvements and regulatory supervision have helped to achieve these gains, I will continue to work with my colleagues to ensure that Federal Reserve remains vigilant and prepared to respond to changes in markets and evolving risks.”
CGTN’s Owen Fairclough has more.
Powell’s nomination means Janet Yellen, the first woman to head the Fed is leaving after just one term, with unemployment at historic lows and a growing economy.
And you’d have to go all the way back to 1979 to find another Federal Reserve Chair who served just one term. It’s usually the norm for a person in that position to be picked by one President and reappointed under another regardless of that President’s political affiliation.
But not with Donald Trump.
As a candidate, Trump subjected Yellen to a barrage of criticism, announcing at one rally: “We have a Fed that is doing political things…This Janet Yellen of the Fed, the Fed is doing political thing by keeping interest rates at this level.”
Trump was essentially accusing Yellen of keeping interest rates low to create favorable economic conditions for his election rival Hillary Clinton.
But he’s said to favour low rates credited with driving an eight-year stock market rally and earlier this month was was much more complimentary, telling reporters at the White House: “I think Janet Yellen is excellent.”
But Yellen is clearly not Trump’s choice. And where she favoured keeping Wall Street in check with stringent regulation to stop another financial disaster, Powell favours watering that down a little.
That’s music to a Trump administration that thinks a lighter touch and tax cuts will help ramp up growth.
Powell’s nomination now requires confirmation by a Republican controlled Senate before he can get to work next year.