Later this afternoon, Donald Trump is scheduled to announce Jerome Powell as the new Fed Chairman.
The Fed Chair is considered by many as the second most powerful position in the United States government.
(behind only the President of the United States)
The role of the Fed Chair is to be the voice of the institution that is tasked with keeping the economy on track.
This change comes at an important time in the country's economic recovery as unemployment is at a 16 year low but wage increases have been mostly stagnant.
Some specifics:
The previous Fed Chair was Janet Yellen.
Donald Trump has chosen to forgo her second term and instead bring in Jerome Powell.
However, even though there is a change, Powell is likely to stay the course of current monetary policy.
The announcement will be made official this afternoon at 3 pm EST at a Rose Garden ceremony.
The change is somewhat interesting because the previous 3 Fed Chair's were reappointed to a second term. This marks the first time that trend has been broken in some time.
Powell's position on things.
In general, Powell is regarded as the G.O.P version of Janet Yellen. Perfectly comfortable continuing her gradual rate of interest rate hikes.
Powell is a lawyer by training and an investment banker by trade.
He has deep roots in the republican party and in the financial industry.
The one area that he differs from Yellen is in his beliefs that Banks need less regulation as opposed to more in order to get our economy growing robustly again.
These were his remarks on the topic:
"The post crisis reform program has been mostly completed and has mostly been successful. I think it's our obligation now, as we reach completion of it, to look back over it and ask what aspects of it may be redundant or inefficient or utterly essential and should be protected down to every letter. But there are going to be some adjustments and I think that's only appropriate."
He is for less regulation, but only if it doesn't cause reckless behavior to run rampant again.
His thoughts on Bitcoin and Cryptocurrency.
Some have called him a bitcoin skeptic, but from watching and listening to him, I just don't see it.
I would say he is neither pro bitcoin, but more importantly, he is also not against it either.
And that is the big one!
Here was his quote on the topic:
"Nothing against bitcoin, nothing against you know, private currencies.… We generally look at some of the risk of cryptocurrencies associated with money laundering and those sorts of issues but we're not broadly opposed or supportive of alternative currencies. I think from a Fed standpoint, I would say I am very cautious on the idea of a Fed digital currency. That's something central banks are generally looking at, but I would say my approach to that would be very, very cautious."
A few very important takeaways from his statement...
#1 - He is not a fan of state backed cryptocurrencies.
That is huge news at a time when several other large countries are working on exactly that.
#2 - He seems to be looking at regulating bitcoin/cryptocurrencies as opposed to banning them.
Again, this is also big news as well in a time when many others are going the banning route.
The most important point in all of this wasn't actually mentioned in that quote above but was mentioned by him in a previous speech.
It has to do with WHY he said he didn't like the idea of a state backed crypto...
According to Powell, he doesn't like the idea of a state backed crypto because he feels like it will hamper technological innovation.
Say what? You mean someone actually gets it?!
That is the most important part in all of this.
His number one reasoning for not wanting to issue Fedcoin of Govcoin or any other state backed crypto is because he thinks it will hamper technological advancements in the private cryptocurrency/blockchain space.
And he is 100% correct!
This guy actually gets it!
I am not sure about you guys but I am pretty excited about this guy taking up this very important position. It removes one of my major fears regarding bitcoin/cryptocurrency and the possibility of central banks all creating their own and outlawing others.
I think this guy just gave confirmation that the odds of that happening in the United States are slim to none.
He's my kind of guy!
Stay informed my friends.
Sources:
https://www.nytimes.com/2017/11/02/business/economy/jerome-powell-federal-reserve-trump.html
All images are courtesy of pixabay.com
Follow me: @jrcornel
Putting much faith in the comments of a central banker, eh? I wouldn't trust anything that comes out of guy's mouth. Remember when Greenspan turned pro-gold after his tenure at the FED? These dudes are absolute scumbags.
Whether him say that than the exact opposite, which he very easily could.
Go Powell. Freedom is precious.
Yes, that's Well Said @davebrewer :)
Hi @jrcornel Thanks for the update. Indeed a very wise decision. Powell, a Republican, is a compromise pick who will likely gain the approval of both Democrats and Republicans in the Senate. But why all the steemians and cryptocurrency supporters should happy on this news....? Here CNBC says:
Thanks a lot for sharing this wonderful news 1st on steemit. This is a great news for all of us. Keep posting wonderful stuff. Stay Blessed!
I loved that statement about him being very cautious about a central bank issued cryptocurrency. Especially when he stated why...
this is interesting issue that wanted to know what happen overthere, @chiny
We live in a very partisan world. I am much happier with a Fed Chair who is pretty neutral on things than one who is falling all over himself to promote crypto currencies. The other day I learned of a "bi-partisan" bill in congress that would eliminate the capital gains tax on small Bitcoin purchases. I believe under $600. The pundit who was speaking about it referred to it as "little known". To this I thought to myself, fantastic! If it is not on everyone's radar it might just go through. The political parties are so afraid of giving the other side a "win" they will vote down things they may even like, or maybe just not care one way or another about.
The only things congress seems to be able to get done are things that don't "matter". Let hope that this bill matters enough to get voted on, but not enough that either party will think of it as a "win' for their opponents Trump nominates a centrist republican who is non committal on crypto currencies either way. Except when it comes to a national crypto currency. Perfect!
While the Fed Chair is not in congress their opinion will be of value to congress. The best opinion will be one that does not politically weaponized the Bitcoin Issue.
Great comment. I agree completely!
Interesting
Fingers crossed, up for the good news and manage for the best!
@jrcornel, thanks for updating and informative news about the second most powerful man of USA announced the name of Jerome Powell as the new Fed Chairman. hope he do revolutionary policies and actions for betteremnt of economics.i supported that should be better for country.
He's a propagandist. What propagandists say should never be taken at face value. That will be my only comment on this.
As much as I would prefect if the federal reserve was part of the government, it isn't. I get your point nonetheless.
https://www.stlouisfed.org/in-plain-english/who-owns-the-federal-reserve-banks
Govt issued cryptocurrency is a total corruption of the whole premise.
Rather than distributing power, they will concentrate even more power, by giving themselves the ability to monitor everyone's spending, collect taxes automatically, etc. Its a very nice solution to erode privacy, that can masquerade under the facade of stopping money laundering, terrorism, crime.
You better believe that sooner or later they will do it, as it makes perfect sense - see Russia, China already getting the ball rolling. These countries can move quicker due to the more totalitarian nature of their govt/society.
It will be a bitter pill for the crypto-enthusiast minority to swallow, but unfortunately, the vast majority dont give a shit, and will go along with the govt plan, as long as they get fed a nice line about security, peace, prosperity, sleep well at night, blah blah.
However, its not all doom and gloom - if the crop of leading cryptos (looking at you BTC, ETH, XMR, etc.) can keep innovating, there will a place for both decentralised and centralised cryptos, and maybe the decentralised can then work on changing the system from within.
"...but unfortunately, the vast majority dont give a shit"
It's not that they don't give a shit, it's that they don't know how to give a shit. As long as they have enough to pay the bills and possibly buy some cigs and alcohol then they are happy. They will do as their government bids them to do.
He definitely seems more reasonable. All we can do is wait and see. With BTC over $7000 a backlash is surely in the works!
He says he's not opposed to cryptocurrency. Right. He is being politially correct. He cannot outright state he is opposed to it, whether he really is or not.
There is no reason to trust anything he says. He is a part of the banking cartel. He is not going to disclose his real position.
Everyone in the cryptocurrency world must always be cognizant of the fact that bankers are constantly discussing this matter, and how they are going to try to position themselves to control it. I venture to say it is probably the main topic of discussion with them everyday.
Cryptocurrency IS a revolution, and everyone who uses it IS a revolutionary, whether they know it or like it or not. Therefore, caution is the rule of the day when speaking to, with, and/or about any type of banker, and be ever watchful.
Sharing info like this helps keep us all aware and safer. Thank you.
We will have to wait to see what happens.
good post
These are good news! I thought you went to the white house, judging bu the photo of the article :D
No more Yellen, finally.
Good news
interesting issue and to know the things happen ... @chiny
Appreciate the update. Seems positive, at least on the surface... we definitely don't need a "govcoin." For me, it's a "wait and see," mostly because things in the crypto space develop so quickly that someone's words today may be completely irrelevant two years from now.
Derpmocracy
you publish quality material! I follow you! Can you help me with a question? Greetings and keep posting things like these!
Very Interesting, thanks for sharing :)
Thanks for the write-up, @jrcornel. I completely agree with your takeaway.
I read the Bitcoin.com headline the other day (https://news.bitcoin.com/trump-to-appoint-bitcoin-skeptic-powell-as-fed-chair/), but when compared to Powell's quotes that they used, it felt entirely misleading.
It sounds like he has an open mind and understands the immense power that any sort of heavy-handed regulation would do to a nascent ecosystem.
His actual skepticism of state-backed cryptocurrencies means he understands the technology more than his critics are giving him credit for, which is a great thing. We'll have to wait and see.
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They are saying they aren't looking at a central bank backed crypto... they are very open to cryptocurrency in general. Hence him saying that he is neither pro nor con bitcoin...
I enjoyed your post. I enjoyed most your posts and find them more relevant than the majority.
It was informative but taking Jerome's words at face value or not mentioning they shouldn't be taken at face value, is something advisable.
You know me. Nonetheless good post. Definitely a plus.
Yes I guess that is a good point. We will know a lot more by his actions than but what he says now. Though I am hopeful that he at least is saying the right things now (as opposed to the opposite) and that he is backing them up with the right mindset... (that blurb about him not wanting to stifle technological advancement). To me, that was the most important part :)
Also good catch about not technically being a government organization. I know that they are not, but that line is so blurry I often forget sometimes as well. :)
Japan u mean....
▀
I will keep my fingers crossed on this issue...nice post anyway
good analysis :)
LESS regulation is always better than MORE regulation.
NO regulation is best.
Good news for those of us who use and have invested in cryptocurrencies, that the president of the FED has a non-obstructionist orientation regarding bitcoin is very good news.
Honestly, @jrcornel , I think his sceptics are also valid. Cryptocurrencies have a high degree of anonymity which does drag in lots of criminal activities, since you are nearly unable to track the money and whom's it is under the law. As good as decentralization is, it shouldn't be used for the wrong purpose.
Meanwhile I am really excited seeing one of the most powerful people of the world not being against cryptos anymore, so the world of the blockchain and cryptocurrencies is more likely to grow!
Greetings!
I comment Bitcoin and Blockchain technology on Disqus once:
"Let make things clear! There can be no Bitcoin without block-chain technology and vice versa. Block-chain controlled and managed is just an ordinary database as Robert Lefebure said before me.
Block- chain is not nice fluidly jazz music. Block-chain is cyber Punk Rock! as Andreas Antonopoulos said once. Block-chain can't play music from shit of paper. He is wild and free and can't be controlled by design. And this design deteriorate greed, corruption, stand of power and promote equal opportunities for all rich and pour. "
And I have to add a few words about FED chairman change in relation with crypto currencies.
I claim that decentralization and no need for trusted middle party is the most powerful feature of blockchain technology. Controlling and regulation of that technology make it inevitably weaker and certainly having something off control is not a thing FED will support ever.
No smoking Campaign 🚭
I simply love your articles, what great content and quality of posting you offer the community here on Steemit and abroad.
Thanks a lot :)
good post