WASHINGTON, Feb. 5 (Xinhua) -- Jerome Powell took oath of office Monday as chair of the U.S. Federal Reserve, succeeding Janet Yellen.
"Today, unemployment is low, the economy is growing, and inflation is low. Through our decisions on monetary policy, we will support continued economic growth, a healthy job market, and price stability," Powell said after being sworn in to lead the U.S. central bank.
Powell, the 16th person to hold the position, was nominated by President Donald Trump in November. The U.S. Senate in late January approved his appointment to lead the central bank for four years.
"My colleagues and I will remain vigilant, and we are prepared to respond to evolving risks," Powell said.
The new Fed head faces an immediate challenge from the wobbly market, as U.S. stocks opened sharply lower Monday after a heavy sell-off Friday.
One of the worries from the market is that the Fed, under Powell, will accelerate its interest rate hikes, undermining the momentum of a bullish market. Economists widely expect the Fed to hike interest rates three times this year, with the first coming in March.
In his confirmation hearing before the Senate Banking Committee in November, Powell indicated that he would continue the gradual monetary policy normalization strategy laid out by his predecessor Yellen.
Another challenge is from Yellen's final regulation act. The Fed told Wells Fargo on Friday that the San Francisco-based bank will be restricted from growing any larger than its total asset size as of the end of 2017 till it improves its governance, risk management and oversight.
"I am also pleased to report that our financial system is now far stronger and more resilient than it was before the financial crisis that began about a decade ago. We intend to keep it that way," Powell said.
The first challenge facing Powell as Fed chair is "working out how to achieve growth that is both adequate and financially sustainable," former U.S. Treasury Secretary Lawrence Summers, also an economic professor at Harvard University, tweeted.
"If the Fed raises (the) rate sufficiently to assure financial stability, there is the risk that the economy will slow too much. If it focuses on maintaining the growth necessary to meet its inflation target, there is the risk of future increases in leverage and assets prices, setting the stage for trouble down the road," Summers said.
Powell has a bachelor degree in politics from Princeton University and a law degree from Georgetown University.
He served as undersecretary at the Treasury Department in the George Bush administration, responsible for policy on financial institutions and the Treasury debt market.
He was a partner at the investment firm Carlyle Group from 1997 through 2005. In 2012 he was nominated by then President Barack Obama as Fed governor.
