WASHINGTON–President Trump nominated Federal Reserve Governor Jerome Powell to become the new Fed Chairman. If approved, Powell will replace current chair Janet Yellen, who was nominated in 2013 and has been the only woman to lead the Fed. Yellen’s term expires in February.
A Fed governor since 2012 and former Treasury official under the George H.W. Bush administration, Powell was among five candidates considered for the job, along with former Fed governor Kevin Warsh, Stanford University economist John Taylor, the president's top economic adviser, Gary Cohn and Yellen.
The position of Fed chair requires Senate confirmation, and with Republicans currently holding the majority the GOP would be able to confirm Powell without any Democratic support, if necessary. Powell, 64, has largely been an ally to Yellen on monetary policy. He has also called for the easing of some of the regulations on banks put in place after the 2008 financial crisis. Powell is not an economist, and instead is a lawyer and former partner at private-equity firm, Carlyle Group. In remarks offered in June, Powell said, "The economy is as close to our assigned goals as it has been for many years. Risks to the forecast now seem more balanced than they have been for a some time."
The position of Fed chair requires Senate confirmation, and with Republicans currently holding the majority the GOP would be able to confirm Powell without any Democratic support, if necessary. Powell, 64, has largely been an ally to Yellen on monetary policy. He has also called for the easing of some of the regulations on banks put in place after the 2008 financial crisis. Powell is not an economist, and instead is a lawyer and former partner at private-equity firm, Carlyle Group. In remarks offered in June, Powell said, "The economy is as close to our assigned goals as it has been for many years. Risks to the forecast now seem more balanced than they have been for a some time." A Fed governor since 2012 and former Treasury official under the George H.W. Bush administration, Powell was among five candidates considered for the job, along with former Fed governor Kevin Warsh, Stanford University economist John Taylor, the president's top economic adviser, Gary Cohn and Yellen.
The decision by Trump to nominate Powell marks the first time in four decades that a new president hasn't asked the current Fed chair to stay on for a second term.
In a statement released by the Fed, Powell said, "Thank you, Mr. President, for the faith you have shown in me through this nomination. I am both honored and humbled by this opportunity to serve our great country. If I am confirmed by the Senate, I will do everything within my power to achieve the goals assigned to the Federal Reserve by the Congress: stable prices and maximum employment."
NAFCU congratulated Powell on his nomination.
"We appreciate his readiness to hear credit unions’ concerns affecting their members and communities," said NAFCU President and CEO Dan Berger. "We look forward to working with him as we continue our work with the Federal Reserve in seeking to ensure a positive regulatory environment in which credit unions can thrive."
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