WASHINGTON — Jerome H. Powell, who will most likely become the new Federal Reserve chairman following a confirmation vote, indicated during testimony before Congress that he plans few changes in how the Fed operates.
During his confirmation hearing before the Senate Banking Committee, Powell, who has served as a Fed governor since 2012 and was largely supportive of the Federal Reserve’s approach to regulation, said he did not see any need for stronger rules but that he also does not see any need to roll back the rules currently in place, although he did speak in favor of easing rules on smaller financial institutions.
Powell also said he would endorse the Fed’s current approach to monetary policy by gradually raising interest rates as economic growth remains healthy. The Fed is widely expected to raise rates when it next meets in December, with Powell telling the senators, “I think that the case for raising interest rates at our next meeting is coming together.”
Powell, 64, is a lawyer by training and worked as an investment banker during his career. If his nomination is approved, Powell will succeed Janet Yellen as chairman.