Powell to replace Yellen as U.S. Fed leader

On November 2, President Donald Trump officially nominated Federal Reserve Governor Jerome Powell as the next Fed chief.

Powell’s nomination awaits Senate approval but, in a statement on Thursday, he said he’s “both honored and humbled by this opportunity to serve our great country.” If his nomination is approved, he said he’ll “do everything within my power to achieve the goals assigned to the Federal Reserve by the Congress: stable prices and maximum employment.”

In Powell’s view, the U.S. economy “has made substantial progress toward full recovery” since the 2008-2009 crisis. Plus, he said, “Our financial system is without doubt far stronger and more resilient,” given banks are more aware of the risks they’re taking, and have higher capital and liquidity.

In a week ahead report, Scotiabank’s Derek Holt says markets will start looking for hints of Powell’s “fuller policy bias” in coming days. Prior to Powell’s nomination, Holt, vice-president and head of Capital Markets Economics, said he preferred the re-appointment of current Fed Chair Janet Yellen — whose term ends in February.

Read: Fed chair decision expected this week

But, as The Associated Press reports, the market and Wall Street was betting on Powell. A policymaker at the U.S. central bank since 2012, he’s expected to follow Yellen’s cautious approach to raising interest rates.