President Donald Trump is expected to announce his nomination for the next Federal Reserve Chairman on Thursday, and it is widely expected that he will select Jerome Powell to take over the post from Janet Yellen when her four-year term ends on February 3, 2018.
The Federal Reserve Chairman is the active executive officer of the Federal Reserve Board, and therefore plays a crucial role when it comes to the U.S. economy. A new Fed appointment can be major, market-moving news, but if Jerome Powell does take the post the reaction will likely be muted.
This is because Powell is seen as a dove, like Yellen, but there is speculation that he would be more amenable to reducing regulations.
According to FOX Business’ Charlie Gasparino, Donald Trump “wants a dove” and also someone who will reduce regulations.
Still, until Trump officially announces his pick, there is the chance for a surprise even though in a weekly White House address, Trump said he had somebody “very specific” in mind to become the next Fed chair. Previously, Trump had said that his search for a nominee had come down to “two or three” candidates. In addition to Powell, current chair Janet Yellen and John Taylor were rumored as the other candidates.