President Trump is about to make history yet again. For the first time in modern history, a president will not allow a first-term chairperson in the Federal Reserve to serve a second term. The organization is about to see a shift as Obama-era appointee Janet Yellen will be on her way out.
Although not officially announced, it is being reported that President Trump has chosen Jerome Powell to lead the Federal Reserve. He is currently a governor for the Reserve. The president himself hinted at this change himself over the weekend in an Instagram video, commenting, “It will be a person who hopefully will do a fantastic job. I think everybody will be very impressed.”
The White House notified Jerome Powell that Trump intends to nominate him as the next Fed chairman https://t.co/dPQY8ulmyM
— The Wall Street Journal (@WSJ) November 1, 2017
The president will make the formal statement tomorrow before he leaves on his trip to Asia. Many news outlets are already reporting the change, calling Powell the “boring” or “safe” choice but admitting that he is probably the best person for the markets.
Powell was appointed to the Federal Reserve as a governor in 2012, ironically by Obama. At that time, some pointed out that he did not have “formal monetary economic training.” He has since been reconfirmed for his post twice which reveals that he is well-supported.
Business Insider stated that “The appointment of Powell, who is among the wealthiest members of the Fed, is likely to be well received on Wall Street” and that he will be less contentious than some of the other possible choices;
“Powell is likely for now to maintain a steady course of gradual but cautious rate increases with an eye to an inflation rate that continues to undershoot the central bank’s 2% goal. Because Powell is seen as less likely than other contenders like John Taylor and Kevin Warsh to be more aggressive about interest-rate hikes, bond markets reacted positively to the news.”