Powell does not appear to be a drastic choice compared to Yellen. As a member of the Fed board, he has never dissented in any of Yellen’s decisions.
About the Federal Reserve
The Fed has incredible power when it comes to shaping the course of the American economy. The Fed chairman can decide short term interest rates for short term loans between banks. This can effect everything from credit card rates to mortgages.
The Fed chair will have to helm the U.S. economy during a time of great transition. It’s been 10 years since the Great Recession. The central bank has been very active in guiding the economy through its recovery. As the economy shows more signs of integrity, Powell will likely follow through on interest rate increases that Yellen proposed. Powell voted in lock step with all of the other rate hikes that Yellen passed as chairwoman.
Powell shares President Trump’s vision of 3 percent growth for the economy. “The biggest challenge we face as a country is to do what we can to increase the sustainable growth rate of the U.S. economy,” Powell said at an event in Washington in October.
