The Federal Reserve announced that it would not be changing the benchmark interest rate yesterday. However, the Fed announced that Americans should brace for an interest rate change in mid-December. This announcement, on the other hand, was overshadowed by the change of leadership after Jerome H. Powell was nominated as the next chairman of the Federal Reserve. Nonetheless, he will have to be approved by the Congress. At the same time, there is no doubt that Janet L. Yellen will continue to serve as the Fed chairwoman until her current term expires. The term is set to expire on February next year. This comes after Donald Trump referred to Ms. Yellen as excellent on Tuesday. However, the president is set to nominate Mr. Powel to replace Ms. Yellen. People familiar with the situation said that the president was to announce the new replacement at an event that was to take place at Rose Garden on Thursday. Jerome H. Powell is a current member of the Fed Reserve. This is a Republican who has been working for the Federal Reserve since 2012. At the same time, he is a supporter of the approach that is being used by the current chair. The two share the same ideologies on monetary policies. Once he is confirmed to replace Ms. Yellen, he is expected to follow the same trajectory.
He has never opposed any of the policies proposed by the Federal Reserve. This includes the four times that it has voted to increase the interest rates and the recent decision to reform the stimulus program by the Fed. At the same time, this was the first meeting that the Fed has held since it passed rules to reduce the mortgage-backed securities and the Treasury bonds. Fed had earlier acquired these two to help the economy grow. This happened after the 2008 financial crisis. Because of the way that Fed is approaching the issue, investors seem unfazed. The announcement to leave the benchmark interest rate unchanged was announced at the end of the meeting. This will see the interest rates stick to between 1 and 1.25 percent. Federal Reserve had already raised the interest rate twice this month. It’s also worth noting that the central bank didn’t alter the wording about a scheduled increase in the future. The vote, however, was unanimous. Nomura Securities chief Unites States economist said that the Fed wants to quell the expectations that it will raise the rates in December.