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Salzburg Global Fellow Jerome Powell nominated to chair US Federal Reserve

US Federal Reserve Governor picked to be next chairman

Jerome Powell speaking at the Salzburg Global Forum on Finance in Changing World in June

Jerome Powell speaking at the Salzburg Global Forum on Finance in a Changing World in June

Salzburg Global Fellow Jerome Powell has been nominated by President Donald Trump to be the next Chair of the US Federal Reserve.

Powell, who has served as a member of the Federal Reserve Board of Governors since 2012, was announced as a nominee during an afternoon ceremony in the Rose Garden yesterday.

In a statement, the White House said, "Today, President Donald J. Trump nominated Jerome H. Powell of Maryland to be Chairman of the Board of Governors of the Federal Reserve System for a term of four years beginning February 3, 2018.

"As a member of the Federal Reserve’s Board of Governors since May 2012, Mr. Powell has demonstrated steady leadership, sound judgment, and policy expertise. Mr. Powell will bring to the Federal Reserve a unique background of Government service and business experience."

His appointment to the position is subject to Senate confirmation. Analysts and media alike will now be examining his recent public remarks for indications on what sort of Chair he will be if confirmed.

Powell attended this year's Salzburg Global Forum on Finance in a Changing World - Global Challenges, Regional Responses: How Can We Avoid Fragmentation in the Financial System?

During this session, Powell gave a speech on five key areas of focus for regulatory reform and the need to be vigilant against new risks that may develop.

On regulation, he said, “We have substantially increased the capital, liquidity, and other prudential requirements for large banking firms. These measures are not free. Higher capital requirements increase bank costs, and at least some of those costs will be passed along to bank customers and shareholders. But in the longer term, stronger prudential requirements for large banking firms will produce more sustainable credit availability and economic growth.”

Powell joins Randal K. Quarles as another Salzburg Global Fellow to have been nominated by President Trump for a federal position this year. In July, Quarles was nominated to serve as the Federal Reserve's vice chairman for supervision. Last month he won confirmation by a 65-32 vote in the Senate.

If Powell is confirmed, he will be the second Salzburg Global Fellow to have chaired the Federal Reserve. Former chair Paul Volcker has led three sessions at Salzburg Global, including Session 492 - Financial Regulation: Bridging Global Differences - in 2012.

Powell currently serves as a member of the Board of Governors alongside Lael Brainard, who spoke at the fifth annual Salzburg Global Forum on Finance in a Changing World - The Future of Financial Intermediation: Banking, Securities Markets, or Something New? - in 2015.

Prior to his appointment to the Federal Reserve Board of Governors, Powell was a visiting scholar at the Bipartisan Policy Center in Washington, DC, where he focused on federal and state fiscal issues. Between 1997 and 2005, he was a partner at The Carlyle Group. He also served as an assistant secretary and as undersecretary of the Treasury under President George H. W. Bush.

 

03.11.2017 Category: FELLOW UPDATES, FINANCE, SALZBURG IN THE WORLD, SALZBURG UPDATES
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