Trump’s friend Jay Powell is richest ever Fed Chief
By? Agence France-Presse
Jerome “Jay” Powell, the Republican former investment banker tapped by President Donald Trump to replace Janet Yellen at the helm of the US Federal Reserve, could be the richest person to ever fill the role.
Trump’s choice of Powell — who is not a trained economist — represents a departure from longstanding precedent, but also sends a signal to markets that the White House intends to maintain a measure of continuity with the Yellen era, which saw rising prosperity and cautious interest rate increases.
The 64-year-old also is succeeding the first woman ever to lead the Fed, who in contrast to Powell spent her career as an academic economist and in various roles at the central bank.
Powell’s profile is unusual, as an attorney rather than an economist whose track record includes serving at the Treasury in Republican administrations.
He has voted with the majority of Fed members since his appointment by Barack Obama in 2012, and was seen as a centrist, unlikely to pursue steep rate hikes.
But as a Republican Powell probably is more amenable to the Trump administration’s deregulation agenda.
“There is certainly a role for regulation but regulation should always take into account the impact that it has on markets,” Powell said in an address early last month.
“More regulation is not the best answer to every problem.”
– Consensus building –
Like former Fed governor Daniel Tarullo, Powell has said he is open to amending restrictions on so-called proprietary trading, in which banks make speculative investments with their own funds.
Powell has meanwhile echoed the Trump administration’s views on the urgent need to spur faster economic expansion, with the White House vowing to return to annual growth of three percent or better.
After joining the Fed, Powell was present in 2013 when then-chair Ben Bernanke began to taper down the central bank’s massive bond-buying stimulus program implemented during the global financial crisis.
The Fed is now starting to shrink those bond holdings under Yellen’s direction.
Bernanke later wrote of Powell’s “reputation as a moderate and a consensus builder.”
Prior to coming to the central bank, Powell was a scholar at the Bipartisan Policy Center, a think tank, and reportedly worked to convince fellow Republicans not to push the United States over the brink of default during a fight among lawmakers over statutory borrowing limits.
A Washington native, Powell previously served as assistant secretary of the US Treasury in charge of financial institutions under US President George H.W. Bush in 1992.
Powell would be among the wealthiest central bank chiefs ever to lead the Fed. He disclosed a net worth earlier this year of between $20 million and $55 million after nearly a decade as a partner at the Washington-based private equity giant Carlyle Group.
Powell’s fellow Fed Governor Randal Quarles, a recently confirmed Trump nominee in charge of banking oversight, also is a former Carlyle Group partner.