Business Federal Reserve Donald Trump Janet Yellin Jerome Powell When it comes to the Federal Reserve, President Donald Trump has been all over the map. He’s alternately praised and attacked its leader, Janet Yellin. During the 2016 campaign, he labeled her a stooge of President Barack Obama who he said was keeping interest rates and the economy humming just to get Hillary Clinton elected. “The Fed has become very political,” Trump said. “Beyond anything, I would have ever thought possible.” (More often than not, though, he said the economy was in a ditch—one time he even said unemployment was 42 percent.) “Janet Yellen is highly political and she’s not raising rates for a very specific reason, because Obama told her not to, because he wants to be out playing golf in a year from now and he wants to be doing other things and he doesn’t want to see a big bubble burst during his administration.” Last week, he was … [Read more...] about Who Is Jerome Powell, Trump’s Likely Pick to Chair the Federal Reserve?
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WASHINGTON (AP) — New Federal Reserve Chairman Jerome Powell delivered a message Tuesday that wasn't quite what Wall Street had expected: The U.S. economy is doing well, maybe even better than he thought late last year. Powell emphasized in his first Congressional testimony that the central bank plans to raise rates gradually. Nonetheless, his growing optimism about the economy rattled investors. Treasury yields climbed and stocks fell amid fresh speculation that the Fed would accelerate the pace of hikes in its benchmark policy rate this year. The Dow Jones industrial average closed down 299 points. The Fed raised rates three times in 2017 and had projected in December that it would raise rates another three times this year. However, many private economists said they now expected the Fed will boost rates four times this year rather than three. "My personal outlook for the economy has strengthened since December," Powell said when asked whether the Fed might boost its projection … [Read more...] about Federal Reserve chairman’s bullish outlook on U.S. economy rattles markets
Pedro Nicolaci da Costa, provided by Published 8:17 pm, Tuesday, February 27, 2018 Thomson Reuters New Federal Reserve Chair Jerome Powell vowed continuity with his precedessor, Janet Yellen, but struck a much different tone in testimony. Yellen appeared skeptical of the likely benefits from tax cuts while Powell, who was appointed by President Donald Trump, was confident it will boost growth. Powell avoided even indirect answers to questions on social issues like race, gender, inequality and immigration, which Yellen was often happy to explore. between a labor economist and a business executive. Recommended Video: Now Playing: President Trump is set to name Jerome H. Powell as the next chairman of the Federal Reserve. Powell will replace Janet L. Yellen, whose term ends next year. Trump is set to announce his decision on the subject Thursday. Powell has backed Yellen's monetary policy in recent years. Yellen was nominated by former President Obama in 2014. … [Read more...] about The Federal Reserve is already looking very different under Jerome Powell than it did under Janet Yellen
Financial markets delivered an unwelcome gift for Jerome H. Powell when he was sworn in last week as chairman of the Federal Reserve — a nosedive.Triggered by fears of rising inflation and interest rates, the Dow Jones industrial average’s record 1,175-point plunge on Feb. 5 kicked off the worst week for stocks in two years. The steep market declines and nerve-rattling volatility put Powell and his colleagues in a bind.The easiest way to calm investors would be for Fed policymakers to signal that they will slow their gradual interest rate hikes, including delaying the next small one expected in March. But that move could backfire, ultimately allowing the economy to overheat and forcing the Fed to raise rates more quickly.So far, based on public comments of Fed officials, it doesn’t look like they plan on delaying a March rate hike — and some analysts even have suggested the pace could be accelerated to address fears of rising inflation fueled by the … [Read more...] about Will the wild stock market cause the Federal Reserve to slow interest rate hikes? And should it?
WASHINGTON — Federal Reserve Chairman Jerome Powell said Tuesday that the global economy is recovering strongly for the first time in a decade, but the central bank needs to remain alert to any emerging risks to financial stability.In brief remarks during a ceremonial swearing-in, Powell said the central bank is in the process of "gradually" raising interest rates and trimming its massive holdings of Treasury bonds.He said the Fed is seeking to normalize its policies in a way that will extend the recovery and bolster its goals of achieving stable inflation and maximum employment."We will remain alert to any developing risks to financial stability," Powell said in his only reference to the wild swings in the past two weeks in financial markets.Powell made the comments during a ceremonial swearing-in event witnessed by Fed staffers and members of his family gathered in the giant atrium of its headquarters building in Washington.Powell took the oath of office the first time on … [Read more...] about New Federal Reserve chair Powell pledges to remain alert to emerging stability risks