Powell, 64, has been a Fed governor for five years and helped shape policy under Janet Yellen, who will leave after a single term as the first woman to lead the world's most influential central bank.
Jerome H Powell will be the next chairperson of the United States Federal Reserve, and will succeed Janet Yellen when her term ends in February, Reuters reported. The Fed has penciled in three more rate increases in 2018, according to projections released December 13, while it sees tax cuts that Trump signed last month providing a short-term stimulus to the economy that will lift growth to 2.5 percent this year, compared with 2.1 percent forecast in September. Among the candidates President Trump was considering, Powell, a 64-year-old lawyer, was seen as a safe choice, who would provide continuity for existing U.S. monetary policy and not rattle markets. With respect to rate rises over the coming years, he has signalled that he will continue to pursue the gradualist approach advocated by Yellen.
The upper chamber approved the nomination in a 84-13 vote.
One of the dissenters, Sen.
Powell is a proponent of financial deregulation but has suggested he supports numerous provisions codified in the Dodd-Frank Wall Street Consumer Protection Act of 2010. Elizabeth Warren, D-Mass., said she was concerned that Powell "will roll back critical rules that help guard against another financial crisis".
Powell has signalled that he favours ways to make bank regulations less onerous, especially for smaller community banks. He has already filled the key post of vice chairman for regulation with Randal Quarles. Lael Brainard will remain the lone board member not to have been chosen by Trump.
As a Fed governor, Powell has never dissented from a central bank decision.
It was the most lopsided of recent Fed chair votes, signaling both Powell's bipartisan appeal and the ebbing of some of the tensions raised by the central bank's aggressive response to the 2007-2009 financial crisis and recession. And based on how government disclosures are drafted, his wealth may actually be closer to $100 million.