During its scheduled December meeting, the Federal Reserve is likely to raise the interest rates stated President Trump’s nominee for Fed chairman Jerome Powell. Likewise, during his Senate confirmation hearing Powell informed the Senate Banking Committee that “raising interest rates at our next meeting is coming together”. Previously, the Federal Reserve raised interest rates. Additionally, while at his hearing Powell avoided any mishaps, which may have ruined his approval. Moreover, Powell informed that due to being a former member of the Fed’s board of governors since 2012, he plans on continuing the current policies, which were initiated by former Fed chairwoman Janet Yellen.
Both Democrats and Republicans view Jerome Powell in a positive light for several reasons. Likewise, some of those comments that Powell made during his confirmation hearing that both parties liked and were pleased to hear are One his positive views on the current unemployment rate of 4.1% and how he believes that the percent can be decreased even further. Secondly, is “there are still Americans on the sidelines of the labor market — particularly prime working-age males who aren’t participating” (NPR). Thirdly in conjecture to that is that currently due to the deficiency of strong wage gains there are still people available to join the workforce. Furthermore, Powell pleased both Democrats and Republicans when he stated his support for stronger bank regulations, which were the direct result of the 2008 financial crisis, but he insisted that he is open to reviewing those policies and edit them to fit the times.
Moreover, Powell informed the committee that currently, the “financial system is much more stable than it was before the housing bust and financial crisis, but he said he is concerned about cybersecurity” (NPR). Furthermore, Powell then went on to state that the new and evolving threat of cybersecurity imposes a great deal of concern to him as he wants to make sure that both the financial and governmental institutions that America holds so dear are protected from these threats. Thus, both members on the political spectrum tried to convince Powell to give his assessment on the current tax overhaul legislation making its way through the legislature and hopefully to Trump’s desk to be signed into law. Additionally, Powell deterred answering that question by ultimately stating that he believed that answering questions on a piece of legislature that’s still in the works is not the Federal Reserve’s prerogative.
Yet, it’s more likely than not that Jerome Powell will be nominated and approved to become the next chairman of the Federal Reserve. As many believe that his nomination
will be approved by the Senate Banking Committee and later by the entire Senate. However, his term will most likely start once Yellin’s term ends, which is scheduled to take place in February 2018.