Trump names Jerome Powell as new fed chief

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Powell's nomination means Janet Yellen, the first woman to head the Fed is leaving after just one term, with unemployment at historic lows and a growing economy.

President Donald Trump says Yellen is a "spectacular person" and doing a "terrific job".

"Powell allows Trump to change the Fed leadership without changing the basic monetary policy strategy".

That task could be complicated by the GOP plan to inject huge stimulus into an already-healthy economy. "That demanded a Republican president replace a Democratic appointee as Fed chair".

One reason for the nomination is probably that Powell "won't disturb markets by veering far from Yellen's policies", says George Selgin, director of the Center for Monetary and Financial Alternatives at the Cato Institute.

After being nominated by President Barack Obama, he joined the Fed's board in 2012.

The question now is whether she will follow tradition and resign as a member of the Fed's board of governors, once her term as chair expires February 3.

Evidently, though, for Trump, success is not the issue. In fact, he was born and raised in the District and its Maryland suburbs and has served in both the Treasury and the Fed. "How he will react when policy needs to pivot meaningfully is something investors will need to be attuned to during the confirmation process". When she was elevated in 2014 from the No. 2 Fed position to the top job, Yellen inherited an economy recovering from the Great Recession and a vastly healthier banking system.

"Predictability is a big thing that I hear a lot", said the Michigan congressman.

"Jay dug in with the intensity of a young analyst", Grumet said.

"I am confident in his deep commitment to carrying out the vital public mission of the Federal Reserve", Yellen said in a statement.

The Wall Street Journal earlier reported Trump had selected Powell.

But Yellen is clearly not Trump's choice. "Under her we got our second wind".

Rep. Sean Duffy (R., Wis.) asked Yellen in July if she was seeking to serve another term. In a speech at Brown in May, she noted that "even in my own field of economics, women constitute only about one-third of Ph.D. recipients, a number that has barely budged in two decades". He is undoubtedly qualified for the role, so barring any tit for tat political games by Democrats, should be readily confirmed by the Senate.

It also brings a confidence and authority that make it unlikely that he will bend to the will of politicians, even if his appointment appears inherently political.

"Lucky Janet Yellen", Valliere said, "getting out just in time". "There will probably be a significant amount of changes". As a Fed governor, Powell has never dissented from a central bank decision.

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