Posted on 11/02/2017 7:18:05 AM PDT by SeekAndFind
Jerome Powell's Fed could be very different than Janet Yellen's, but the Fed governor is expected to steer monetary policy much as she did but jump into deregulation in a way she would not.
Powell is expected to be nominated to head the Federal Reserve by President Donald Trump on Thursday as the successor to Yellen when her term ends in February. A lawyer and former undersecretary of the Treasury, he is considered a solid choice, and while not an economist, he is experienced at the Fed, having been appointed a governor in 2012.
Powell is also a Republican and the least controversial of the final choices Trump considered to run the central bank, other than Yellen. The Wall Street Journal reported Wednesday that Powell was notified of Trump's decision to nominate him.
Powell will steer the Fed, but central bank watchers note that the institution is already shifting. The new Fed will be more hawkish because of a switch to more hawkish Fed presidents as voters next year. In addition, there are three governor vacancies for Trump to fill, and those individuals could make a big difference in the way the board operates.
Repeatedly described as boring by Wall Streeters, compared with economist John Taylor or former Fed Governor Kevin Warsh, Powell is expected to stay on a similar policy course as Yellen but could be proactive in dropping some regulations on the financial sector.
"He's boring, but he's to the point," said Ward McCarthy, chief financial economist at Jefferies. "You don't listen to him and scratch your head and wonder what he just said."
Powell's background is in private equity but he also worked in the Treasury Department under President George H.W. Bush and helped investigate the former trading house Salomon Brothers' Treasury bond scandal.
(Excerpt) Read more at cnbc.com ...
Right now, I really like boring for a fed chair nominee.
This is a compliment. So long as he has experience, is knowledgeable and wise, I like boring. Boring is stable.
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