Fresh off a resounding confirmation by the U.S. Senate, Jerome Powell takes over as chairman of the Federal Reserve next week with the central bank facing big decisions about monetary policy.
The Fed is not only in the process of gradually raising interest rates, it also has been slowly reducing its massive balance sheet in the past two years.
The big question is how aggressive the Fed may need to be if economic growth picks up because of the tax cut package and triggers a troublesome spike in inflation.
Powell has said he favors a gradual increase in interest rates, but some analysts consider him more likely to speed up the pace than his predecessor Janet Yellen.
One area where the two definitely differ is regulation. Powell is seen as favoring less regulation on banks and investment firms and has said he would consider “appropriate ways” to reduce it.
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