Jerome Powell will be the 16th chairman of Federal Reserve, after he secured enough votes on Tuesday night. Powell substitutes Janet Yellen to become the new chairman. He takes the office amidst successive rate hikes and a reduction of $4.5 trillion in the balance sheet.
The final vote casted that brought Powell as the new chairman was 85 to 12. Powell, or as he is commonly know, Jay, will be the top position of the Federal Reserve. The Fed is currently under a critical time and is still dealing with the financial crisis after effects.
However, Janet, who is the first Chairman to not take office two times in a row, will be in office till February which means, Jay, will not assume his position and roll till then.
On a little background of Jay; Jerome Powell has a more markets based history and background and is well known to the venture capital. He has worked with various venture capitalist firms in the past as well including the Global Environmental Fund and Severn Capital Partners. He has also spent some time at the Treasury Department. Moreover, before he moved in wit the fed, he was also a visiting scholar at Bipartisan Policy Center think tank.
Moreover, it is also believed that Jay will adopt policies that run closely with what Yellen was doing in office or which she exercised. The monetary policy is going to be somewhat hawkish and it is believed that there will be a rise in rates.
The Federal Reserve of United States took cautious policies to normalize the situation after the financial crisis. There were five alone interest rate increases in December. This pattern is believed and said to continue after Jay assumes office in February. Moreover, the central bank officials have also hinted that in the current year, there will be three more interest rate hikes.
Powell, after popular vote, has now become the 16th chairman of the Fed and will run power or finish his term of 4 years. Yellen happens to be the first chair after Miller to serve less than 2 successive terms in the office.