Powell the right choice to steer Fed course
Trump choice is set to continue kid gloves approach that is supportive of the global economy and is likely to be welcomed by policymakers elsewhere
Both Yellen and Powell agree on the need to exit the massive quantitative easing experiment that has radically expanded the Fed’s balance sheet with assets worth US$4.5 trillion, and that it must be done gradually without disturbing the markets and the broader economy too much.
Powell is set to continue this kid gloves approach, which will also be supportive of the global economy and is likely to be welcomed by policymakers elsewhere.
The new Fed chair candidate is the proverbial safe pair of hands. As a result, his confirmation, required in the US Senate, is not expected to run into difficulties.
His choice would not have been out of the ordinary in most other times but, with the highly volatile Trump as president, many people have heaved a sigh of relief.