Trump nominates Powell to be next Fed chairman
— President WASHINGTON
Donald Trump on Thursday announcedhis choice ofFederal Reserve board member Jerome Powell to be the next chairman of the nation’s central bank, succeeding Janet Yellen, the first woman to hold the position.
Trump made the announcement in a Rose Garden ceremony with Powell standing next tohim. TrumpsaidPowell had earned the “respect and admiration of his colleagues” during hisfive years on the Fed’s seven-member board.
Trumpalso praisedYellen, whom he decided not to nominate for a second term, as a “wonderful woman who has done a terrific job.”
In his remarks, Powell said it had been a privilege to serve under both Y ellen and former Fed Chairman Ben Be rn anke, saying he shared their sense of mission and dedication and said hewould do “everything within my power” to achieve the Fed’s congressionally mandated goals of “stable prices andmaximum employment.”
Y ellen, in a statement, congratulatedPowell on his nomination and said ,“I am confident in his deep commitment to carrying out the vital public mission of the Federal Reserve.” Yellen said shewouldwork with him to ensure a smooth transition.
After a search that was more public than any before in the Fed’s more than a century of history, Trump’s choiceofthe64-year-oldPowell was seen as a safe choice that represents continuity.
“Mr. Powell could be considered a clone of Janet Y ellen in a positive sense. He will continue the same cautious, gradualist policy in setting interest rates that she did ,” said SungWon Sohn, economics professor at California State University-Channel Islands.
If confirmed by the Senate, Powell would become chairman when Y ellen’ s term ends on Feb. 3.
Trump had considered re-nominating Yellen for a second four-term term. But in the end, he opted for Powell, a Republican, over Yellen, a Democrat, explaining last week that doing so would allow him to put his ownmark on the Fed.
Powell would be the first Fed leader in nearly four decades to lack an advanced degree in economics. He has served on the Fed board since 2012 after a career as an investmentmanager through which he amassed personalwealth in the tens of millions.
Trump had indicated that his final decision had come down to Powell, Yellen and John Taylor, a Stanford University economist. Earlier, the president had also considered Kevin War sh, a former member of the Fed board, andGaryCohn, his chief economic adviser.
Powell will likely be welcomed on Wall Street as someonewhohas supported the cautious stance toward interest rate hikes that Yellen has pursued in her nearly four years as chair and may be inclined to extend that approach if the economy performs as expected.