Jerome Powell, has been tapped by President Trump as the next Chair of the Board of Governors of the Federal Reserve. Powell, who is a member of the Fed Board of Governors, will replace the current Chair Janet Yellen. Powell faced the Senate Banking, Housing and Urban Affairs Committee for his confirmation hearing on November 28, 2017.
"If confirmed, I would strive, along with my colleagues, to support the economy's continued progress toward full recovery. Our aim is to sustain a strong jobs market with inflation moving gradually up toward our target. We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink," Powell said hinting at rate hike in his opening remarks. He went on to face tough questions on rolling back Obama-era financial regulations, autonomy of the Federal Reserve as well as the fake accounts scandal at Well Fargo Bank.
Powell was originally appointed to the Board in 2012 to fill an unexpired term and was later reappointed and sworn in in May 2012 for a term that will last until January 2028. (See also: Bull Market's Best Friend Is Yellen Among Fed Picks)
As a member of the Board, Powell has not dissented from any decision to maintain or raise the federal funds rate since his appointment, according to the Fed minutes. For that reason, he is thought to be dovish on monetary policy and would represent a continuation of the Fed’s approach to maintaining relatively low interest rates.
In June this year, Powell made a speech where he laid out the objective and direction of regulatory reform with five core areas of focus for the overhaul of the regulatory system.
- Simplification of regulation for small and medium sized banks.
- Resolution plans: Consider extending the cycle for living will submissions from annual to once every two years, and focusing every other of these filings on key topics of interest.
- Volcker Rule: Reassessing whether the implementing regulation most efficiently achieves its policy objectives. Consider eliminating or relaxing aspects of the regulation without undermining its mail policy goals.
- Enhance the transparency of stress testing and the Comprehensive Capital Analysis and Review.
- Supplementary Leverage Ratio: assess relative calibrations of the leverage ratio and the risk-based capital requirements.
Powell was a partner at The Carlyle Group, a New York-based private equity firm, from 1997 through 2005. Prior to that, he was a visiting scholar at the Bipartisan Policy Center in Washington D.C., where he focused on federal and state fiscal issues, according to his bio page on the Federal Reserve’s website. He also served as an Assistant Secretary and as Undersecretary of the Treasury under President George H.W. Bush. Powell received an A.B. in Politics from Princeton University in 1975 and a law degree from Georgetown University in 1979. At Georgetown, he was the editor of the Georgetown Law Journal.