Jerome Powell swears as president of the Federal Reserve with fearful markets

The central bank is expected to raise the key interest rate 3 times this year.

Although expansion progressed progressively over past nine years, inflation remained mysteriously low, as Powell acknowledged.

"Through our decisions on monetary policy, we will support continued economic growth, a healthy job market, and price stability", he said.

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Powell, the 16th person to hold the position, was nominated by President Donald Trump in November. However, the yields on government bonds are now at several-year highs, and the stock market ended Friday's extremely hard week in which Dow Jones lost 666 points on Friday.

The financial system is now "much better capitalized" and the banking system "more resilient" than they were entering the global financial crisis a decade ago, Yellen said.

Powell took the oath of office one day after his 65th birthday from Randal Quarles, the Fed's vice chairman for supervision, in a ceremony that was attended by Fed staff and Fed board member Lael Brainard.

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"I've worked with Gov. Powell for five years, very constructively", Yellen 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.

He has steadily supported Ms Yellen's approach to monetary policy and financial regulation, creating an expectation that he would be unlikely to attempt large or sharp changes in the Fed's course.

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However, In 2017, Powell also said he wanted to preserve core pieces of the 2010 Dodd-Frank regulatory law, which he helped to implement, that includes strong capital requirements and annual stress tests for banks, the reports.