WASHINGTON – The Latest on the Senate confirmation hearing of Jerome Powell, President Donald Trump’s nominee for Federal Reserve chairman (all times local):
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11:05 a.m.
Jerome Powell strongly signaled at his confirmation hearing that the Federal Reserve will raise interest rates at its meeting next month.
Asked specifically whether he expected a rate hike at the December meeting, Powell says, “I think the case for raising interest rates at our next meeting is coming together.”
Pressed to say specifically whether there would be a rate hike, Powell says that he did not want to go further in his comment. He cites a Fed communication rule that states officials are not supposed to say what they will do at upcoming meetings before they hold the meeting and listen to the views of all colleagues.
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10:45 a.m.
Jerome Powell says he is “strongly committed” to an independent central bank.
He says that he had not had any conversations with anyone in the administration that gives him any concerns on that front.
Testifying at his confirmation hearing, Powell was pressed by Sen. Sherrod Brown, D-Ohio, to give his opinion on what impact the Republican tax cut proposals would have on economic growth and the deficit.
Powell refused, saying while the Fed was monitoring the debate in Congress it was not yet clear what outline the final measure would take. He also says it was not the Fed’s job to provide Congress with economic projections on various tax measures it was considering.
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10:00 a.m.
Jerome Powell will face questions from the Senate Banking Committee Tuesday, which is holding a confirmation hearing on his nomination to become chairman of the Federal Reserve.
President Donald Trump nominated Powell on Nov. 2 after a lengthy search which involved interviews with five finalists including current Fed Chair Janet Yellen.
Trump said he wanted to put his own stamp on the central bank, which was likely one reason he chose Powell, a Republican, over Yellen, a Democrat who had been nominated by President Barack Obama.
In his prepared testimony, Powell is casting himself as a figure of stability and continuity, praising both Yellen and former Fed Chairman Ben Bernanke. He says his goal is to preserve the Fed’s “independent and nonpartisan status.”
