Jerome Powell takes oath as sixteenth president of the Fed

Jerome Powell has taken office as the sixteenth president of the US Federal Reserve on Monday and takes over from Janet Yellen.

The new president of the Fed had previously worked in the Treasury department during the George Bush administration in the 1990s and up until now he was one of the central bank’s governors.

In November 2, President Donald Trump already made his intentions clear of nominating him as the new leader of the United States’ central bank and on January 23 it was confirmed by the Senate that Janet Yellen would not be president for a second term.

Powell who backed Yellen’s presidency is expected to continue with her monetary policies. The Fed is expected to continue gradually raising interest rates back toward more 'normal' levels. While Yellen saw mostly low rates and inflation, Powell takes office as bond yields and inflation are rising.

"I am humbled and honored by this opportunity to serve the American people," Powell said in a statement.

"My colleagues and I will remain vigilant, and we are prepared to respond to evolving risks."

“Today, unemployment is low, the economy is growing and inflation is low,” Powell said. “I am also pleased to report that our financial system is now far stronger and more resilient than it was before the financial crisis that began about a decade ago. We intend to keep it that way.”

Powell has said that the Fed would make policies that are efficient as well as effective. He did not mentioned the stock market turbulence of the past week, which culminated in record falls on the day he was sworn in.