Jerome Powell Takes Oath as Fed Chief

On the first weekday since Yellen was replaced by Jerome Powell as Fed chair, she's assuming a post at the Brookings Institution, a Washington, D.C. -based think tank.

She had submitted her resignation from the board of governors of the Federal Reserve in November after Trump, in a break with tradition, did not reappoint her. Trump instead nominated current Federal Reserve Governor Jerome Powell to take over as head of the central bank.

Powell has lauded the central bank's patient approach, led by Yellen, in gradually raising interest rates and slowly unwinding the $4.5 trillion balance sheet that the Fed amassed to support the economy after the crash. I am also pleased to report that our financial system is now far stronger and more resilient than it was before the financial crisis that began about a decade ago.

Mr Powell's predecessor Janet Yellen issued a statement congratulating Mr Powell at the time of his nomination, noting his "seriousness of purpose".

"If the economy broadly behaves, I don't think it'll be of great effect", he said.

One of the worries from the market is that the Fed, under Powell, will accelerate its interest rate hikes, undermining the momentum of a bullish market.

Deep in the red, Stocks on Wall Street plunged on Monday, continuing their huge fall from Friday, as a pullback from record highs deepened and investors grappled with rising bond yields and possibly firming inflation.

Powell's term as a member of the Fed's board will end January 31, 2028. "We intend to keep it that way", Powell said.

Latest News