Senate is Voting on New Fed Chair Today. This is Why it Matters.
Today the Senate will vote in a the new nominee for the Federal Reserve Chairman position. Jerome Powell, nominated by President Trump, will replace Janet Yellen who served in that position since 2014.
Why does this matter?
Janet Yellen held the position during a very interesting time in our American economy. In 2014, we were experiencing a great recovery from the tumultuous recession that happened during 2008-2010.
She had to make a series of tough decisions to raise the federal interest rate. Basically, faith in the economy and the financial health of the American people led her to believe that the Government can now again compete against corporations for bonds and people will remain diligent with their credit in a good economy.
Now Jerome Powell will be presumably taking over after the vote today. The economy is still booming. Will he have to continue the rate hikes?
All of this matters to you and your personal finances. Government bonds become more attractive ways to stash your earnings with more hikes. But, on the other end, credit card companies will start to raise their interest rates. If the American public isn’t in control of their debt, it could cause more heartache.
Continue to follow the facts in the news. Hit me up if you have questions.