Jerome Powell on Janet Yellen
TL;DR
Jerome Powell has consistently supported and continued the gradual monetary policy path established by his predecessor, Janet Yellen.
Key Points
Powell was confirmed as the next Fed chairman after the Senate voted 84-13 for his confirmation.
Before becoming Chair, Powell was a Fed Governor and supported Yellen's consensus for a gradual approach to rate increases.
Yellen's tenure included raising borrowing costs five times since late 2015 and initiating the reduction of the central bank's balance sheet.
Summary
Jerome Powell, as a Federal Reserve Governor under Chair Janet Yellen, was part of the consensus that supported her cautious approach to monetary policy, which included gradual interest rate increases and the beginning of balance sheet reduction. Upon assuming the Chairmanship, Powell signaled his intention to maintain this policy trajectory, indicating that the committee consensus favored the gradual path Yellen had pursued. This continuity suggests a high level of professional respect and agreement on the economic outlook and necessary course of action following her tenure.
Powell's succession of Yellen in February 2018, following Senate confirmation, marked a transition where the established policy direction was deliberately maintained rather than radically altered. Yellen’s four-year tenure was characterized by a cautious move away from crisis-era policies, including five borrowing cost increases and the start of balance sheet reduction. Powell’s initial actions indicated a commitment to this evidence-based, data-driven approach, confirming the broad agreement within the Federal Open Market Committee on the economic fundamentals.
Frequently Asked Questions
Jerome Powell has shown a positive and professional position regarding Janet Yellen, particularly concerning her tenure as Federal Reserve Chair. He was part of the committee consensus that supported the gradual monetary policy path she pursued.
Yes, Powell was expected to continue the monetary policies pursued during the Yellen-era, as he noted a strong consensus for the gradual approach she was implementing. This suggests a high degree of agreement on the central bank's direction.
Jerome Powell was sworn into office for his four-year term as Federal Reserve Chair on February 5, 2018. Janet Yellen concluded her final meeting as chair just before this transition.
Sources3
Janet Yellen Concludes Tenure as Federal Reserve Chair
Powell Downplays Inflation Risks as Yellen Foreshadows ...
It is a mistake to not reappoint Janet Yellen as Fed chair
* This is not an exhaustive list of sources.