Jerome Powell (b. 1953)
Who They Were
Jerome Powell (b. 1953) is an American lawyer and former private-investment executive who became Chair of the Federal Reserve in February 2018. Unusually for a modern chair, he came to the role from a legal and private-investment background rather than academic economics, having joined the Board of Governors earlier in the decade after earlier service at the Treasury. Succeeding Janet Yellen, he initially continued the gradual tightening of policy before shifting course. His chairmanship was defined by two dramatic episodes: the emergency response to the 2020 pandemic, when the Fed returned its policy rate to a near-zero range, and the sharp tightening cycle that began in 2022 to combat a surge in inflation, the fastest sequence of rate increases since the Volcker era.
Key Contributions
Powell led the Federal Reserve through two of the most turbulent economic episodes in its recent history.
- In March 2020 his committee returned the federal funds rate to a near-zero range in an emergency move and deployed extensive support as the pandemic hit the economy.
- Beginning in March 2022 the Fed carried out the sharpest tightening cycle in four decades to fight inflation, at one point delivering a 75-basis-point hike and signalling further large moves.
- At the Fed's Jackson Hole symposium he delivered an unusually short, blunt speech warning of 'some pain' ahead for households and businesses as the Fed pursued price stability.
His communications, from signalling 'patience' after market turmoil in late 2018 to describing an early rate cut as a 'mid-cycle adjustment', were closely watched for signals about the path of policy.
On EconRecall
Federal Reserve Chair from February 2018, who led the 2020 pandemic emergency response and the rapid 2022 tightening against inflation. Play the games that feature Jerome Powell: