Jay Powell named as next Federal Reserve chairman

President Trump has named Jay Powell as the next Federal Reserve chairman. Mr Powell, an existing Federal Reserve governor since 2012 is considered a more dovish candidate with ideals closer to that of Janet Yellen, his predecessor, than the more hawkish John Taylor who was also seen as a potential candidate. This appointment from the President represents a continuation of the status quo at the central bank that should help to preserve both the growth environment seen in the US economy, and the sustained rally from the US stock market. Predictably, US markets did not react to the appointment nor did Asian markets in overnight trading. The dollar seems to be the largest mover as uncertainty around the implementation of US tax reform continues to remain at the forefront of investors’ minds.