Mortgage Industry Reacts Positively to New Fed Chair Nomination

Posted by Amrock

President Donald Trump’s nomination of Jerome Powell to lead the Federal Reserve in 2018 was received positively by many in the mortgage and housing finance industry, reports HousingWire. Powell, the current Maryland Federal Reserve Governor, is set to begin a four-year term as chair, following Janet Yellen, in February of next year.

Yellen “committed” to smooth transition

Powell thanked Trump for the nomination in a statement, promising he would work to achieve stable prices and maximum employment as Fed Chair. “I congratulate my colleague Jay Powell on his nomination to be Chairman of the Federal Reserve Board,” Yellen said, on news of the announcement. “I am committed to working with him to ensure a smooth transition.” Yellen also commended Powell’s “dedicated public service and seriousness of purpose.”

“Dovish” Powell won’t deviate from charted course

Mike Fratantoni, chief economist for the Mortgage Bankers Association, applauded the President’s choice, saying, “The Fed’s goals of maintaining full employment, low inflation, and financial stability are essential components of a healthy and dynamic housing finance system.” Fratantoni continued, “His work at the Fed through this challenging recovery should enable him to carefully guide monetary and regulatory policies in the years ahead in a manner that provides the environment for further, sustainable growth.”

“The choice of Jerome Powell as Fed Chair supports President Trump’s pro-growth agenda quite well,” Steve Rick, chief economist for CUNA Mutual Group, told reporters. “Powell represents a relatively dovish voice whose path should not deviate significantly from that charted by Janet Yellen.”

Decision not to renominate Yellen “senseless”

However, not all agreed with the President’s pick. The article reports that Maxine Waters, D-Calif., Ranking Member of the House Committee on Financial Services, called the decision not to renominate Yellen “senseless.” “Despite [Yellen’s] impeccable credentials, accomplishments, and outstanding service, Donald Trump has diverged from the common practice of reappointing Federal Reserve Board Chairs who are eligible for another term, and senselessly pushed Chair Yellen out of her historic position of leadership at the Fed.”

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