Jerome Powell

Washington : Jerome Powell, US President Donald Trump’s nominee to lead the Federal Reserve, said he expected the central bank to continue monetary tightening and to ease regulatory burdens on financial system.

“If confirmed, I would strive, along with my colleagues, to support the economy’s continued progress toward full recovery,” said Powell in remarks to be delivered at his Senate confirmation hearing on Tuesday, Xinhua reported.

“We expect interest rates to rise somewhat further and the size of our balance sheet to gradually shrink,” Powell said in the remarks which were released on Monday before his hearing.

He also noted that the central bank should be prepared to respond decisively in response to crisis.

In regard to regulatory reforms, Powell said the central bank under his leadership will consider appropriate ways to ease regulatory burdens on the financial system while preserving core reforms, such as strong capital and liquidity requirements, stress testing and resolution planning.

In his remarks, he also stressed the independence of the Fed. “I will do everything in my power to achieve those goals (maximum employment and price stability) while preserving the Federal Reserve’s independent and nonpartisan status that is so vital to their pursuit,” said Powell.

Powell, who is currently a member of the Fed’s Board of Governors, was nominated by Trump to replace chair Janet Yellen, whose term as chair expires in February 2018. He is expected to face smooth confirmation at the Senate.

—IANS