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NC State Economist Dr. Mike Walden – “The New Head of the Fed”

 

Mary:  I’m Mary Walden with economist MW, welcoming you to the economic perspective.  Today’s program looks at the new head of the Fed.  Well Mike, the suspense – at least for economists – is over.  President Trump has nominated a new person to be the chair of the Federal Reserve Board.  Who is it, and what does the appointment mean?

Mike:  Summary Answer

  1. Jerome Powell – currently on the Fed Board – nominated to replace Janet

Yellen

  1. lawyer and investment banker, previously served in the Treasury Dept.
  2. first non-Ph.D. degreed economist to head the Fed since Paul Volcker in the

80s

  1. still, considered a thorough studier, but will likely rely more on staff
  2. expected to continue Yellen’s policies of gradually increasing interest rates

and gradually reducing the Fed’s portfolio – so not much change in policy

  1. expected to be easily confirmed
  2. incidentally, Janet Yellen can continue to stay on the Fed Board if she wants
  3. President also has 3 other vacancies to fill
  4. I’m MW

Mary:  And I’m Mary Walden for N C State Extension