>> So help me God.>> Thanks man.>> How about this for your first day on the job? The new Federal Reserve Chairman Jerome Powell greeted with the biggest single day point drop in the stock market's history as he officially takes over the top spot this week at the most powerful economic institution in the world.
Some analysts say investors tend to get edgy when the Fed gets a new relatively unknown leader. So, who is Jerome Powell?>> He's not by background a trained economist. And if you compare him to somebody like Janet Yellen, she had many, many years of research behind her. She had been in the Fed system for a lot longer.
And so people, particularly investors, they're wondering how he would react if the US economy has a shock. He is a bit of an unknown entity in that sense.>> In November, Trump broke with tradition and tapped Powell, a Fed governor, to succeed Yellen after just one term. She leaves him with a growing US economy.
But a payroll's report that showed rapidly rising wages have fueled worries that inflation is rising faster than expected. And that could throw off the assumptions investors are now making.>> Investors really do think that Powell will continue what Yellen started. And by that I mean the Fed began a tightening cycle in late 2015.
They expect to raise rates again this year three times. With unemployment being low, the economy being strong and financial conditions really still being quite loose, that looks set to continue.>> If Powell deviates from that plan and gets aggressive with rate hikes, that could put him on a collision course with the President, who has made faster US economic growth a top priority.
Investors will have a better handle on power after he gives his first testimony as Fed chief before Congress on the last day of the month.>> To express my gratitude