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Donald Trump likely to pick Fed's Jerome Powell to lead US central bank

Powell, Yellen and Stanford University economist John Taylor are among those on the Republican president's short list

Reuters  |  Washington 

Federal Reserve Governor Jerome Powell

President is likely to pick to replace Janet Yellen as head of the U.S. central bank, a source familiar with the matter said on Monday.

Trump is expected to announce his choice on Thursday, a said separately.

Powell, Yellen and Stanford University economist are among those on the Republican president's short list.

By picking Powell, a Fed governor since 2012, Trump would get a combination of a change in leadership with the continuity offered by somebody who has been a part of the Yellen-run Fed that has kept the and markets steady in recent years.

Powell, 64, has supported Yellen's general direction in setting monetary policy, and in recent years has shared her concerns that weak inflation justified a continued cautious approach to raising rates.

The main challenger is Taylor, a favorite of conservative Republicans who want the central bank to rely more on rules when setting interest rates.

Critics say that a Taylor-run Fed would run the risk of tightening policy too fast and choking off the recovery from the 2007-2009 financial crisis and recession.

The Fed is expected to leave rates unchanged at the conclusion of its latest two-day policy meeting on Wednesday.

First Published: Mon, October 30 2017. 22:05 IST
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