Published: Wed, February 07, 2018
Money | By Wilma Wheeler

Jerome Powell sworn in as new US Federal Reserve chair

Jerome Powell sworn in as new US Federal Reserve chair

Yellen, 71, could have chosen to remain a governor, since she was appointed to the board by President Barack Obama for an unexpired term ending in 2024. He is the 16th President of the US Central Bank.

In his confirmation hearing before the Senate Banking Committee in November, Powell indicated that he would continue the gradual monetary policy normalization strategy laid out by his predecessor Yellen. He held position of Governor of Federal reserve since 2012, was a partner of Carlyle Group Investment Fund and served in Treasury with Republican George Bush Padre.

Powell's premiere at forefront of world's most powerful central bank is not easy to show. According to Josh Zumbrun, national economics correspondent for the Wall Street Journal, that story spans multiple presidencies and involves feuding congressmen, a formula to set monetary policy and the Swedes.

But Yellen said she supported the choice of Powell as her successor. He did not mentioned the stock market turbulence of the past week, which culminated in record falls on the day he was sworn in.

One of the worries from the market is that the Fed, under Powell, will accelerate its interest rate hikes, undermining the momentum of a bullish market.

With the economy improving steadily, the Fed will likely raise rates three times in 2018, as projected under Yellen.

Jerome Powell has taken office as the sixteenth president of the US Federal Reserve on Monday and takes over from Janet Yellen.

If rates go up, investors might be more interested in putting ir money in bonds than in stocks.

However, In 2017, Powell also said he wanted to preserve core pieces of the 2010 Dodd-Frank regulatory law, which he helped to implement, that includes strong capital requirements and annual stress tests for banks, the reports.

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