Fed critics say the central bank purposely pushed up the stock market in an effort to create a wealth effect that officials hoped would spill over into the broader economy.
During the 2016 presidential campaign, Trump alleged that Yellen kept interest rates low for political reasons to benefit Obama. I am also pleased to report that our financial system is now far stronger and more resilient than it was before the financial crisis that began about a decade ago.
Powell has a bachelor degree in politics from Princeton University and a law degree from Georgetown University. During his tenure and since being nominated by Trump in November to be lead the Fed, Powell has hewn close to former chief Janet Yellen's policies.
The new president of the Fed had previously worked in the Treasury department during the George Bush administration in the 1990s and up until now he was one of the central bank's governors. According to Josh Zumbrun, national economics correspondent for the Wall Street Journal, that story spans multiple presidencies and involves feuding congressmen, a formula to set monetary policy and the Swedes.
With the economy improving steadily, the Fed will likely raise rates three times in 2018, as projected under Yellen. While Yellen saw mostly low rates and inflation, Powell takes office as bond yields and inflation are rising.
Jerome Powell succeeds Janet Yellen, who served for 14 years in Fed, last four as president.