By Lalit K JhaWashington, Nov 3 (PTI) President Donald Trump has tappedJerome "Jay" Powell to lead the US central bank, bypassingJanet Yellen for a second term despite praising her excellentmanagement of the world's largest economy over the past fouryears.
If confirmed, Powell will succeed Yellen, the first womanto oversee monetary policy, in February, when her four-yearterm as Federal Reserve chief expires.
"He's strong, he's committed, he's smart," Trump saidmaking the announcement about Powell's nomination at the WhiteHouse.
In replacing Yellen, Trump is breaking with precedent.
The previous three Fed chairs were reappointed.
Trump said that he respected Yellen and called her "awonderful woman who has done a terrific job."The Fed under YellenÂ’s leadership has sharply reducedunemployment while maintaining control of inflation, coming asclose to achieving its congressional mandate as at any time inits history.
If confirmed by the Senate, Powell will put hisconsiderable talents and experience to work, leading USÂ’sindependent central bank, which has the criticalresponsibility to set monetary policy and monitor our bankingsystem as a whole, the president said.
Powell has served on the Federal Reserve Board ofGovernors since 2012.
He has consistently voted with Yellen to slowly raiseinterest rates and sell off assets that the Fed bought up inthe wake of the severe recession of 2008 and 2009, indicatingthat he is expected to continue with the current monetarypolicy.
"During these five years, he has earned the respect andadmiration of his colleagues for his hard work, expertise andjudgement," Trump said.
"He has proven to be a consensus builder for the sound,monetary and financial policy that he so strongly believes in.
Based on his record, I am confident that Jay has the wisdomand leadership to guide our economy through any challengesthat our great economy may face," said the president.
As Fed chair, a position some consider the second mostpowerful post in government, Powell would be the voice of aninstitution that is charged with keeping the economy on trackby adjusting interest rates that influence the decisions ofmillions of Americans.
Powell previously served as undersecretary at theDepartment of Treasury in the administration of PresidentGeorge W Bush.
He also has nearly three decades of business experience.
He attended Princeton University where he received a Bachelorof Arts in Politics in 1975.
He continued his studies at Georgetown University, wherehe earned a Juris Doctor.
While at Georgetown, Powell served as the editor-in-chiefof the Georgetown Law Journal. PTI LKJNSA.
This is unedited, unformatted feed from the Press Trust of India wire.