What to expect from Jerome Powell, US President Donald Trump’s new Federal Reserve head
Jerome Powell has been confirmed as the new Federal Reserve chair after a vote of US senators last night.
So what can we expect from the incoming head of the central bank?
Powell, 64, is a multi-millionaire Republican with an estimated income of at least $20m, and a former partner of Carlyle Group. He trained as a lawyer and is the first Fed boss in decades who doesn’t hold a degree in economics.
Read more: Trump’s tax cut prompts JP Morgan to hike wages by $15 to $18 per hour
As a moderate, he is widely seen as a safe choice for the role, and was first appointed to the central bank’s board of governors by Barack Obama.
Powell is likely to follow Janet Yellen in taking a cautious approach to interest rates. The Federal Reserve increased interest rates by 0.25 basis points in December, the third rate rise of 2017. And, he has spoken in favour of in favour of Yellen’s winding of the Federal Reserve’s balance sheet.
He is expected to be flexible on deregulation of the financial services sector, having previously backed less regulation for small and medium-sized banks. However, he has not indicated a desire to dismantle key parts of the Dodd-Frank regulations which were introduced after the financial crisis.