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Donald Trump Has Told Jerome Powell he Will be New Fed Chief

If confirmed by the Senate, Powell would take over from Yellen when her four-year term as Fed chair expires in February. (REUTERS/Joshua Roberts)

If confirmed by the Senate, Powell would take over from Yellen when her four-year term as Fed chair expires in February. (REUTERS/Joshua Roberts)

The choice marks the first time since Jimmy Carter’s administration in the 1970s that a president has failed to reappoint the Fed chair named by his predecessor.

Washington: President Donald Trump has informed Federal Reserve Governor Jerome Powell that he is the pick to replace Janet Yellen at the helm of the central bank, a media report said on Thursday.

The Wall Street Journal report quoted two people familiar with the matter as saying Trump spoke to Powell on Wednesday to inform him of the decision.

If confirmed by the Senate, Powell would take over from Yellen when her four-year term as Fed chair expires in February. Powell has already been through that confirmation process in order to become a member of the Feds board.

Yellen was a potential, though dark horse candidate, and earlier in the day Trump praised her as “excellent.” But he has made clear in all his appointments he wants to put his own stamp on policy.

The choice marks the first time since Jimmy Carter’s administration in the 1970s that a president has failed to reappoint the Fed chair named by his predecessor.

After months of public debate, analysts say Powell represented a middle-ground option for the president, who wanted to mark a departure from the Obama era, while markets prefer continuity and favoured Yellen who has presided over an era of low inflation and steady economic growth.