U.S. stock markets plunged at the close of the week after remarks by the Federal Reserve chairman. After Jerome Powell became chairman of the Federal Reserve, he stated that more interest rate hikes would be necessary to prevent inflation from becoming a structural feature of the US economy.
The US stock market dropped by 3 percent after he made his comments. As a result, consumers in the United States are being forced to pay more for necessities.
The largest economy in the world has seen inflation rise to levels not seen in four decades. In a much-anticipated address at a conference in Wyoming on Friday, Mr. Powell indicated the Federal Reserve was likely to impose additional interest rate hikes in the coming months and could keep them high “for some time.”
At the Jackson Hole meeting, he observed, “Reducing inflation is going to need a sustained period of below-trend growth.” Investors worry that slower economic growth combined with rising interest rates may lead to a recession. Mr. Powell acknowledged the expense to the American people and businesses of bringing inflation under control, but he maintained it was a price worth paying.
Who is Jerome Hayden “Jay” Powell?
Born on February 4, 1953, Jerome Hayden “Jay Powell is an American attorney and investment banker who has led the Federal Reserve as its 16th chair since 2018.
Powell was one of six children born to Patricia (née Hayden; 1926-2010) and Jerome Powell (1921-2007), both lawyers, on February 4, 1953, in Washington, D.C. . James J. Hayden, his granduncle, taught at Georgetown Law School and served as dean of the Columbus School of Law at Catholic University of America. His five siblings are named Susan, Matthew, Tia, Libby, and Monica.
Early Education
Powell received his diploma from the Jesuit university preparatory school Georgetown Preparatory in 1972. His senior thesis at Princeton University, where he earned a Bachelor of Arts in politics in 1975, was titled “South Africa: Forces for Change.” He worked for Pennsylvania Republican Senator Richard Schweiker as his legislative aide for a year from 1975–1976.
Powell received his bachelor’s degree in politics from Princeton in 1975 and his Juris Doctorate from Georgetown University Law Center in 1979. In 1984, he made the transition to investment banking, where he eventually became a partner at The Carlyle Group among other places.
As President George H. W. Bush‘s temporary undersecretary of the Treasury for domestic finance in 1992, Powell had a brief government career. In 2005, Powell left Carlyle Group to start his own private investment firm, Severn Capital Partners. Before returning to public service, he spent two years as a visiting scholar at the Bipartisan Policy Center.
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Personal Life
Powell wed Elisa Leonard in 1985 at the Episcopal Washington National Cathedral. Elissa is the chair of the board of managers for the community they live in, Chevy Chase Village in Maryland, and they have three children. During the year 2010, Powell served as a member of the board of governors for the country club known as Chevy Chase Club.
In 2019, Powell’s wealth was estimated to be between $20 and $55 million, according to documents made public by the government. Powell’s philanthropic and academic involvement includes his service on the boards of DC Prep, a public charter school; Princeton University’s Bendheim Center for Finance; and The Nature Conservancy.
He also helped establish the Center City Consortium, a network of 16 private schools serving the District of Columbia’s low-income communities. Powell has voted Republican all his life.
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