In his first congressional testimony, Jerome Powell delivered an upbeat appraisal of the US economy. In his own words, headwinds have turned into tailwinds. While avoiding any commitment on the plausible monetary stance, markets have discounted a faster pace in rate hikes, pushing bond yields to fresh highs.
Jerome Powell policy actions
Jerome Powell is bound to have a crash landing in the Federal Reserve. From the very beginning of his mandate, pressure is mounting on him to raise rates. An unpalatable choice for someone who hoped to follow Janet Yellen’s wait-and-see stance for as long as he could.
US President Donald Trump eventually nominated Federal Reserve Governor Jerome Powell as next chairman of the Federal Reserve. Governor Powell has never dissented from the policy actions of the FOMC during his five years as a voting member. However, it remains to be seen how he will make his own mark on the US central bank.