Fed-Chair

Powell to be new Fed Chairman

US President Donald Trump has nominated the lawyer and former investment banker Jerome Powell to succeed Janet Yellen as the Chairman of the Federal Reserve. The candidate thus nominated by Trump now needs to be approved by the US Senate. Janet Yellen’s four-year term as Fed Chair expires on 3 February 2018. What probably tilted the nomination in Powell’s favour was the fact that he is said to have closer links to the governing Republicans. With his choice, Trump will no doubt satisfy far more Republicans than if he had proposed that Yellen should be re-appointed. Another advantage over candidates that have hitherto mainly been active in the groves of academia was presumably that Powell has, since May 2012, been a member of the Fed’s Board of Governors and therefore has much experience in the procedures and decision-making processes at the world’s most important central bank. What may also have…