Local financial experts say today's expected nomination of veteran Fed Governor Jerome Powell to succeed Janet Yellen as Chair of the Federal Reserve Board is a good move for the markets and for investors, News Radio 1200 WOAI reports.
Elizabeth Flavin Crawford, CEO of San Antonio's Sendero Wealth Management, says Powell would do much to continue the steady policies of Janet Yellen, which have pulled the markets out of the Great Recession, and led to this year's market boom.
"It would be seen as a continuation from Yellen in policy, very moderate," she said. "The markets have reacted very well to Yellen's term, we have had great growth, and we continue to hit new highs."
Crawford says the new Fed Chair will face a daunting task which is unmatched in human history. He or she will be a modern Midas, and will preside over the unwinding of the several episodes of 'quantitative easing' that the Fed used to help spur the economy during the recession by purchasing bonds and other financial instruments.
"In the U.S., we are looking at an over $4 trillion balance sheet," she said. "We have never been in this position before, so it is important to every American."
Crawford says when asked whether the Feds needs a 'hawk' or a 'dove' as its Chair, respected long time former Federal Reserve Bank of Dallas President Richard Fisher said what is needed is a 'wise owl,' and she says Powell may just be that person.
"Polls show that he is by far the lead candidate. He is least disruptive to current policy, he is very moderate, so we wouldn't see any big changes, and, keep in mind the market does not like surprises, it is a very forward-looking mechanism."