Washington, D.C. — Marc Jarsulic, vice president for Economic Policy at the Center for American Progress, released the following statement today after President Donald Trump announced that he plans to appoint Federal Reserve Board Governor Jerome “Jay” Powell as the next chair of the Federal Reserve.
The Trump administration’s decision not to reappoint Federal Reserve Chair Janet Yellen after her first term—breaking with precedent dating to the Great Depression, in spite of an excellent record for the Fed under her leadership—is deeply disappointing. The U.S. economy is a world leader in large part because our country has managed to insulate our central bank from partisan politics, and Yellen successfully presided over economic growth despite the headwinds of fiscal austerity and partisan gridlock. It is vital that Powell follow Yellen’s example by exercising sound economic judgment independent of the administration’s preferred policies, and the Senate confirmation process for Powell must ensure that the Fed will remain independent. Powell’s success as Fed chair will depend heavily on his ability to maintain continuity with the Yellen Fed. He should clearly signal his intention to do so—especially on monetary policy, where his views are less widely known, and on the regulatory reforms designed to prevent a repetition of the financial crisis.
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