Published: Wed, February 07, 2018
Economy | By

Jerome Powell takes oath as sixteenth president of the Fed

Jerome Powell takes oath as sixteenth president of the Fed

Powell took the oath of office one day after his 65th birthday from Randal Quarles, the Fed's vice chairman for supervision, in a ceremony that was attended by Fed staff and Fed board member Lael Brainard.

The new Fed head faces an immediate challenge from the wobbly market, as US stocks opened sharply lower Monday after a heavy sell-off Friday.

Although expansion progressed progressively over past nine years, inflation remained mysteriously low, as Powell acknowledged.

Janet continued the tradition of excellence of Fed Chairs before her and set the bar very high for incoming Federal Reserve Chairman Jerome H. Powell.

"As I begin my term, I want to stress my commitment to explaining what we're doing and why we are doing it", Powell said in a video message released Monday. The Federal Open Market Committee, the bank's policymaking arm, took its key overnight interest rate target to near-zero in late-2008 and left it there for seven years.

With the economy improving steadily, the Fed will likely raise rates three times in 2018, as projected under Yellen.

Another challenge is from Yellen's final regulation act.

Powell will likely face a tough task as he tries to steer the United States economy.

Powell has a bachelor degree in politics from Princeton University and a law degree from Georgetown University. The Fed is expected to continue gradually raising interest rates back toward more "normal" levels.

He also also held assistant secretary and undersecretary roles at the Treasury Department, and served as a lawyer and an investment banker in New York City.

Marvin Goodfriend, a Carnegie Mellon professor and former economist at Federal Reserve Bank of Richmond, was tapped to fill one of the still-vacant Fed board seats, but he has not been confirmed yet.

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