Trump Picks Powell To Be Next Fed Chair

Tyler Durden's picture

According to The Wall Street Journal, President Trump has picked Jerome Powell to be the next Federal Reserve Chair.

The White House has notified Federal Reserve governor Jerome Powell that President Donald Trump intends to nominate him as the next chairman of the central bank, according to a person familiar with the matter.

The president spoke with Mr. Powell on Tuesday, according to another person familiar with the matter who couldn’t describe what they discussed.

Mr. Trump said in a video last week that he had “somebody very specific in mind” for the job.

“It will be a person who hopefully will do a fantastic job,” Mr. Trump said in a video posted to Instagram, adding, “I think everybody will be very impressed.”

Modest reactions for now in USDJPY and gold...

However, WSJ notes that while President Trump had settled on Mr. Powell by Saturday, but people familiar with the process had cautioned that he could change his mind.

WSJ summarizes Powell's views as follows...

On Interest Rates

Mr. Powell, 64 years old, has backed Ms. Yellen’s policy of gradually raising interest rates if the economy improves as projected. In recent public remarks he has sounded an optimistic note, saying he expects inflation to move up to the Fed’s 2% target, economic growth to remain steady and the unemployment rate to fall further. “I would view it as appropriate to continue to gradually raise rates,” he said in June.

On Shrinking the Fed’s Portfolio

Mr. Powell in September voted in favor of beginning the yearslong process of winding down the central bank’s $4.5 trillion portfolio. Like Ms. Yellen, Mr. Powell has said the Fed could resort to new rounds of asset purchases in another crisis if the economy needs more stimulus. Putting new assets on the Fed’s balance sheet should be an option “only in extraordinary circumstances,” he said in February.

On Monetary Policy Rules

Mr. Powell has joined several of his Fed colleagues in warning against relying too heavily on mathematical rules such as the so-called Taylor Rule to guide monetary policy. That could put him at odds with congressional Republicans who have pushed the Fed to adopt such a formula in an attempt to make Fed policy-making more transparent and predictable.

“Simple policy rules are widely thought to be both interesting and useful, but to represent only a small part of the analysis needed to assess the appropriate path for policy,” he said February. “I am unable to think of any critical, complex human activity that could be safely reduced to a simple summary equation.”

On Dodd Frank

Mr. Powell has expressed willingness to ease some of the burdens imposed on financial institutions from the 2010 Dodd Frank law, a position that could appeal to the Trump administration.

Speaking before lawmakers in June, Mr. Powell said he was looking into softening the Volcker rule preventing banks for making overly risky bets with their own money. He also said it might be appropriate to ease some of the annual stress tests that big banks must perform. 

He has also called for revisiting new supervisory requirements imposed on bank boards of directors after the crisis. In his view, a board’s role “is one of oversight, not management.” That, he said in a 2015 speech, means boards should not be saddled with “an ever-increasing checklist.”

On Fannie Mae and Freddie Mac

Mr. Powell has called on Congress to overhaul the housing finance system, saying he’d like to see the country’s two large mortgage-finance firms, Fannie Mae and Freddie Mac, move out from under government conservatorship. More private capital in those firms would reduce the risk of a taxpayer-funded bailout in the event of a downturn, he said in a speech in July.

Although the Fed isn’t responsible for housing finance, it supervises some of the country’s largest lenders who frequently sell their loan to the two agencies. “No single housing finance institution should be too big to fail,” he said.

*  *  *

Jerome Powell will be the first former investment banker to become Fed Chair (and first non-economics PhD in 40 years).

Powell, a Princeton graduate, was a lawyer in New York before he joined the investment bank Dillon Reed & Co. in 1984. He stayed there until he joined the Treasury Department in 1990. After he left Treasury, he became a partner in 1997 at The Carlyle Group (CG), the private equity and asset management giant. He left Carlyle in 2005.

He will also likely be the richest Fed head ever - Powell's assets are worth between $21 million and $61 million, according to financial disclosures which require officials to give a range in the value of their various holdings.

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FreeShitter's picture

Jerome Hayden "Jay" Powell is a member of the Federal Reserve Board of Governors, the governing board of the Federal Reserve System. He has served at the position since May 25, 2012, after he was nominated by President Barack Obama.  Swamp thing, bitchez.

loebster's picture

Lipstick on a pig. END THE FED. End the problem. http://wp.me/p4OZ4v-2GY

spastic_colon's picture

I had a dream that futures will be down 900 but green by morning...........

the only positive in the announcement "(and first non-economics PhD in 40 years)."

Deathrips's picture

Joe biden with a quick lesson on how zionism works.

https://www.youtube.com/watch?v=Uo-UXZ-1ups

 

RIPS

YUNOSELL's picture

I guess we can expect more financial illusion and magical pixie dust from the Powell that be (TPTB)

beemasters's picture

Next, Trump idol worshipers will jump to his defense saying he is playing a 7D-chess (whatever that means). :)

Zero_Ledge's picture

Carlyle Group from 1997-2005.  All you need to know.

opport.knocks's picture

+1000

I wonder if he was in the room with Bush Sr and the Saudis when the Towers went down.

Zero_Ledge's picture

If so, Bush Sr probably grabbed his butt, and then the Saudis giggled.

MillionDollarButter's picture

Who needs Jews when you can have Jesuits?  Fall guy?

So It Goes's picture

C'mon.  Thank God this one is not Jewish - for once.

Squilliam Fancyson's picture

Don't even bother to play the Zio card, Powell is Georgetown (Jesuit) educated - as always. It means full collusion with Zios, NWO Nazis and all the former chair perps.

Lore's picture

Nothing in the skimpy bio gives any hope for meaningful reform.

This a guy who does what he's told.

Another day, another 24hrs closer to collapse of the petro-debt regime.

jeff montanye's picture

if in any, donald trump was always going to be in the third grouping of great men.

https://www.goodreads.com/quotes/103-be-not-afraid-of-greatness-some-are...

and it may very well take the collapse of the petro dollar and his own impeachment, among other events, to bring it out of him.

Full Court Lugenpresse's picture

I carry no brief for Powell but not gonna lie, it's at least pleasant to have a goy back at the helm, especially now that (((Fischer))) fucked off too

Squilliam Fancyson's picture

Don't mean a thing, Powell is an admitted Georgetown alumni. E.g. Jesuit education. Different name, same game.

Conscious Reviver's picture

The next thing you know a Goy's in the Chair.

The Hoch Juden say "Bring on the Bear".

Market that is.

—-----------------------

Sung to the tune of Beverly Hillbillies.

eatapeach's picture

I think I understand what you mean, but I also think it will be lost on some of the readership. Anyhow, yeah, here it comes.

JRobby's picture

They can't all be Ashkenazi. Or can they?

Blue Steel 309's picture

Jesuits and Zionists are the exact same NWO cabal. Try again. If anything this gives ammo for the zionists to hurl pejoratives like "anti-semite" when we provide evidence (((who))) runs these banks.

soniii's picture

hey racist friends jesuits hate jews since centuries, get your fact straight before posting nonsense.

btw who cares about his religion I'm more interested about his economic policies, which won't change much from yellen from what i see

Endgame Napoleon's picture

Piled Higher and Deeper—The Status Quo

JRobby's picture

How about someone who uses real economic statistics measured by real, recognized statistical measurement standards to determine policy?

That might make sense? 

JibjeResearch's picture

What ever you say baithezz.... CTRL+P please...

You are doing a great job..

For the top 10%

 

Life is gooddddd.... Baawhahah ahahahahhaha..

Bobbyrib's picture

I gotta say the Trump supporters are awfully defensive of Trump's alleged pick who is an Obama apointee.

JRobby's picture

I am a Trump supporter and I was hoping for someone much more "revolutionary". The Fed is on "borrowed time" (pun intended) anyway. The math and phony statistics all scream monetary reset.

Can the road they kick the can down be lengthened? Where exactly is the cliff it is heading for?

Gorgeous's picture

Wish we could end it, but...Gov-Fed symbiosis will not end.  Shared nervous system, shared bodily fluids, shared bank account.  This blood-sucker ain't going nowhere.

Conscious Reviver's picture

Re.  "Gov-Fed symbiosis ...Shared nervous system, shared bodily fluids, shared bank account."

Shared Coup d'Etat. Did you miss the National Archives release last week?

No one counts your effin vote.

People get the government they deserve. Look out below Amerika.

serotonindumptruck's picture

"Swamp won."

For now, perhaps.

(((They're))) only prolonging the inevitable.

Very soon, it will be time to run for the underground fallout bunkers, which 99% of the population will not have access to.

OpTwoMistic's picture

New guy can't wait to get his hands on the money,  inflate more and steal as much as possible.  Wait till he finds out that there will be no bailout of banks by the people.

Does not know he will be the last fed chair. 

End the Fed.

PlayMoney's picture

The Fed and Treasury might as well be in the same office. The ESF at Treasury probably directs bond buying through the Fed/banks. The Fed is going nowhere....unfortunately.

Bobbyrib's picture

As your name suggests you are to optomistic. This country is full of zombies and sheeple. The tax payers will bail out the banks again. Count on it.

 

I would suggest putting your money where the bankers and the .GOV can't get their greedy hands on it.

Bobbyrib's picture

As your name suggests you are to optomistic. This country is full of zombies and sheeple. The tax payers will bail out the banks again. Count on it.

 

I would suggest putting your money where the bankers and the .GOV can't get their greedy hands on it.

JibjeResearch's picture

What ever you say baithezz.... CTRL+P please...

You are doing a great job..

For the top 10%

 

Life is gooddddd.... Baawhahah ahahahahhaha..

OCnStiggs's picture

Are these Soros bots totally software driven now? Just incomprehensible jibberish....

Endgame Napoleon's picture

Don’t question too much. They might call the bots before a congressional hearing, asking them if they are trying to rig ZH votes.

To Hell In A Handbasket's picture

I told you guys, before Orange Jesus was inaugurated. The SWAMP own both parties and Orange Jesus is part of the club. I told this forum that Sessions was a joke when his name was talked about as AG and got voted down for stating the obvious and the Trumpettes are still flummoxed, why Sessions hasn't gone after Killary. Alas, there simply is no cure for stupid.

An affiliate of ISIS kills in NYC and the plebs are angry more at Muzzies, than the USSA, who created, armed, funded and aided them. With brain-cells like this to call upon, it doesn't take Einstein to work out that the Swamp won. The collective average IQ of the plebs vs the collective average IQ of the elite? It's a no fucking contest and the results are staring us in the face. 

FreeShitter's picture

And they didnt even need to take the guns ....the collective IQ of most americans is nearing freshman levels and that's highschool freshies.

bearwinkle's picture

IQ has nothing to do with grade or education level. That's not to say that IQs haven't lowered but it has to do with the higher IQ race(s) being watered down with lower IQ race(s). 

 

jeff montanye's picture

i don't think the problem is iq related very much at all.  it's more based sheeple having a liking for authoritarianism, a willingness to obey, a loyalty to an office, party or organization.  lack of curiosity also plays a part as does no desire for vengeance.

serotonindumptruck's picture

In my mind, you are completely exonerated.

It was quite obvious to many casual observers that Trump had 'overdosed' on beta-carotine supplements during the early 1990s, and had permanently stained his skin color.

Orange Jesus, indeed.

general ambivalent's picture

Yet more proof that conservatives are just stunted liberals.

mkkby's picture

Makes no sense. Why then do both parties plus the media want to impeach?

Ending the fed WAS NOT a campaign promise.

You cry babies are as bad as the snowflakes. Boo hoo hoo, I didn't get EXACTLY what I wanted INSTANTLY.

Conscious Reviver's picture

Mkkby, there is no vote. There was a Coup in 1963. Did you miss that? The beaurocratic descendants of the Coup plotters are still in power. Did you miss that too?

jeff montanye's picture

yes there was and they are but trump is the closest to a non plotter since jimmy carter, maybe nixon.  maybe ever.  you don't get hillary's 450 newspapers and tv networks against trump's 25 (including the national enquirer and the klan paper) because they trust you are one of them.  look at the endorsements for bush, romney or mccain vs. trump: 

https://noahveltman.com/endorsements/

hell the last three republican candidates for president didn't support him.  that must mean something.

http://www.businessinsider.com/mitt-romney-bush-trump-rnc-convention-2016-5

Conscious Reviver's picture

Jeffy baby, it's all just drama to keep you entertained while Rome burns. Get it now?