Jerome Powell nominated as Fed chair
Since joining the U.S. Federal Reserve's board of governors in 2012, Jerome Powell has spoken out on key issues facing his central bank and the global economy. Below is a sample of some of what he's had to say, in his own words.
On fintech (Oct. 18, 2017 speech)
"Rapidly changing technology is providing a historic opportunity to transform our daily lives, including the way we pay. Fintech firms and banks are embracing this change, as they strive to address consumer demands for more timely and convenient payments. A range of innovative products that seamlessly integrate with other services is now available at our fingertips. It is essential, however, that this innovation not come at the cost of a safe and secure payment system that retains the confidence of its end users."
On big banks' governance (Aug. 30, 2017 speech)
"Today, the role of a director of a large banking firm is more expansive, more challenging, and more important than ever. Boards now oversee management's participation in highly challenging annual exercises, such as stress testing, capital planning, and resolution planning, that have fundamentally changed the business of our largest institutions. Boards now more carefully evaluate the compensation practices of these large institutions to assure that they reinforce positive incentives and discourage unwanted risk taking. Across a range of responsibilities, we simply expect much more of boards of directors than ever before. There is no reason to expect that to change."
On the Volcker rule (June 26, 2017 speech)
"The Federal Reserve is reassessing whether the Volcker rule implementing regulation most efficiently achieves its policy objectives, and we look forward to working with the other four Volcker rule agencies to find ways to improve that regulation. In our view, there is room for eliminating or relaxing aspects of the implementing regulation in ways that do not undermine the Volcker rule's main policy goals."
On the economy (June 1, 2017 speech)
"My baseline expectation is that the economy will continue on a path of growth of about two per cent, strong job creation and tightening labour markets, and inflation moving up toward our two per cent target. I expect that unemployment will decline a bit further and remain at low levels for some time, which could draw more workers into the workforce, put upward pressure on wages, or cause businesses to invest more as labour costs rise, all of which I would view as desirable outcomes. Risks to the forecast now seem more balanced than they have been for some time."
On monetary policy (June 1, 2017 speech)
"If the economy performs about as expected, I would view it as appropriate to continue to gradually raise rates. I would also see it as appropriate to begin the process of reducing the size of the balance sheet later this year. Of course, both decisions will depend on the performance of the economy."
On global outlook (Nov. 18, 2016)
"At this current juncture of the global economy, it is all the more important for emerging Asian economies -- and, indeed, emerging market economies more broadly -- to enhance domestic demand while pursuing prudent policies. It would be good to do this for the sake of the global economy, but emerging Asian economies should do this for their own sakes as well."
On central bank independence (Feb. 9, 2015)
"One of the lessons of the crisis is that the financial system evolves so quickly that it is difficult to predict where threats will emerge and what actions may be needed in the future to respond. Because we cannot anticipate what may be needed in the future, the Congress should preserve the ability of the Fed to respond flexibly and nimbly to future emergencies. Further restricting or eliminating the Fed's emergency lending authority will not prevent future crises, but it will hinder the Fed's ability to limit the harm from those crises for families and businesses."