Friday, November 03, 2017 10.00am/Proshare WebTV
Yesterday Thursday November 2nd, 2017 President Donald Trump of the United States of America, made a key economic decision in announcing Mr Jerome Powell as the nominee to takeover Janet Yellen as the next Federal Reserve Chairman.
The United States Federal Reserve is the most powerful Central Bank in the globe, with great influence in monetary policy decisions that covers interest rates and issues like quantitative easing. This is naturally why global markets watch the body language and movement of the Federal Reserve regularly.
It was indeed a break in tradition, because unlike in the past when the Fed Chairmen has served two terms, irrespective of party affiliations and ideologies, Janet Yellen will now serve only one term.
President Trump in his announcement and presentation of Mr Jerome Powell at the White House said “Today is another important milestone to our path, to restoring economic opportunity for the American people, in just a short time we have made incredible strides. Unemployment is at its lowest levels in more than 16 years. We now have back to back quarters of 3% GDP growth a major accomplishment and we are doing better and better every single week”.
Speaking further the U.S President stressed that “If we are to sustain all of these economic progress, our economy requires sound monetary policy and prudent oversight of our banking system. That is why we need strong, sound and steady leadership at the United States Federal Reserve”.
He said Jerome Powell was nominated because of his capacity to provide sound leadership to the US Federal Reserve, describing Powell as a strong, committed and smart person. Trump believed if the Senate confirms Powell, America’s financial system and economy will benefit immensely from his considerable talent, to lead the nation’s independent Central bank and monitor the banking system.
Mr Jerome Powell a Lawyer by profession and an Investment banker has served in the Federal Reserve Bank Board of Governor, since 2012 when he was nominated by former President Barack Obama.
Powell in 1992 served as the Under Secretary for Treasury under the George W. Bush Presidency, and also the former MD of Bankers Trust, former Vice-President of Dillon, Read & Co, former Senior Partner Carlyle Group and also founder of Seven Capital Partners.
According to Bloomberg, a recent survey of 30 Economists, showed that they viewed Powell as a monetary dove in policy drive, while the Bloomberg Intelligence Fed Spectrometer rated him as neutral.
One positive narrative from Powell’s nomination is the fact that he is a strong advocate of the Dodd-Frank Wall Street reform and the Consumer Protection Act in the U.S
Mr Powell will emerge the 16th US Federal Reserve Bank
Chairman, if he gets cleared by the Senate and will resume office in February,
2018 when the tenure of current Chair Janet Yellen expires.