Donald Trump has tapped Jerome Powell to lead the US central bank, denying Janet Yellen a second term, as the president voiced confidence that he would be able to guide the world's largest economy through "any challenges" with his wisdom and leadership.
US President Donald Trump shakes hands with his nominee for Chairman of the Federal Reserve, Jerome Powell (R), in the Rose Garden of the White House in Washington, DC, on Thursday. Pic/AFP
If confirmed, 64-year-old Powell will succeed Yellen, the first woman to oversee monetary policy, in February, when her four-year term as Federal Reserve chief expires. "He's strong, he's committed, he's smart," Trump said making the announcement about Powell's nomination at the White House.
In replacing Yellen, Trump is breaking with precedent. The previous three Fed chairs were reappointed. Trump said that he respected Yellen and called her "a wonderful woman who has done a terrific job." The Fed under Yellen's leadership has sharply reduced unemployment while maintaining control of inflation, coming as close to achieving its congressional mandate as at any time in its history.
"If confirmed by the Senate, Powell will put his considerable talents and experience to work, leading US's independent central bank, which has the critical responsibility to set monetary policy and monitor our banking system as a whole," the President said. Powell, a Republican and multi-millionaire, has served on the Federal Reserve Board of Governors since 2012. He has consistently voted with Yellen to slowly raise interest rates and sell off assets that the Fed bought up in the wake of the severe recession of 2008 and 2009, indicating that he is expected to continue with the current monetary policy.
"During these five years, he has earned the respect and admiration of his colleagues for his hard work, expertise and judgement," Trump said.
