Jerome Hayden Powell is the 16th chair of the Federal Reserve. Since February 2018, he has served in that office. By President Barack Obama, he was nominated to the Board of the Federal Reserve in 2012. You may wonder about the net worth of Jerome Powell. Here, we will reveal it for you.
The Net Worth of Jerome Powell
According to his 2017 personal finance disclosure, Jerome Powell has a net worth which ranges between $19 million and $55 million. According to Fox Business, Jerome Powell is one of the richest people to hold his position in decades. When he was nominated to hold the role by President Trump in 2017, there is a report that he would be the richest Fed chair since the 1940s, when Marriner Eccles served in the role. As Fed chair, he receives a salary of $203,500. If we compare to his predecessor, his net worth and salary are higher.
Based on The Post, Jerome Powell got his money at private-equity firm The Carlyle Group. From 1997 through 2005, he was a partner at Carlyle based on the Federal Reserve website. Besides one of the richest Fed chairs, he is also the first without formal economics training.
Even though he is wealthy and has a position, however his friends and colleagues describes that he is an ‘annoyingly normal’. He lives in Chevy Chase, Maryland and he rides bicycle eight miles to work at the Fed. Also, he plays golf and the guitar.
Education of Jerome Powell
In 1972, Jerome Powell graduated from Georgetown Preparatory School, a Jesuit University-preparatory school. He got a Bachelor of Arts in politics from Princeton University in 1975, the title of his senior thesis was “South Africa: Forces for Change”. He spent a year as a legislative assistant to Pennsylvania Senator Richard Schweiker in 1975 to 1976.
In 1979, Jerome Powell earned a Juris Doctor degree from Georgetown University Law Center. There, he was an editor-in-chief of the Georgetown Law Journal.
Career of Jerome Powell
Powell moved to New York City in 1979. There, he became a clerk to Judge Ellsworth Van Graafeiled of the United States Court of Appeals for the Second Circuit. With Davis Polk and Wardwell, he was a lawyer from 1981 to 1983. From 1983 to 1984, he worked at the firm of Werbel and McMillen.
Powell worked at Dillon, Read & Co., an investment bank from 1984 to 1990. There, he concentrated on merchant banking, financing, and mergers and acquisitions, rising to the position of vice president. He worked in the United States Department of the Treasury between 1990 and 1993. Jerome Powell became the Under Secretary of the Treasury for Domestic Finance in 1992. It is after he was nominated by George H. W. Bush. Powell supervised the investigation and sanctioning of Salomon Brothers after one of its traders submitted false bids for a United States Treasury security. It happened during his stint at the Treasury.
In 1993, Jerome Powell started working as a managing director for Bankers Trust. However, in 1995, he quit after the bank had a trouble when some customers suffered large losses because of derivatives. Then, he went back to work for Dillon, Read & Co.
He was a partner at The Carlyle Group from 1997 to 2005. He founded and led the Industrial Group in the Carlyle US Buyout Fund. After Jerome Powell left Carlyle, he founded Severn Capital Partners. It is a private investment firm which focused on specially finance and opportunistic investments in the industrial sector. He became a managing partner of the Global Environment Fund in 2008. It is a private equity and venture capital form which invests in sustainable energy.
He was a visiting scholar at the Bipartisan Policy Center, a think tank in Washington DC between 2010 and 2012. There, he worked on getting Congress to be able to raise the United States debt ceiling during the United States debt-ceiling crisis of 2011. He conveyed the implications to the economy and interest rates of a default or a delay in raising the debt ceiling.
Jerome Powell as a Chair of the Federal Reserve
Jerome Powell was nominated as the chair of the Federal Reserve on 2 November 2017 by President Trump. The Senate Banking Committee accepted this nomination to be chair in a 22 – 1 vote on December 5th, 2017 with Senator Elizabeth Warren casting the lone dissenting vote. On January 23, 2018 his nomination was confirmed by the Senate by an 84 to 13 vote. On February 5th, 2018, Jerome Powell assumed office a chair.
In Q1 2018, continuing to raise US interest rates is one of the first actions of Powell. It was done as a response to the increasing strength of the US economy. In the same year, for the first time since the 2008 financial crisis, he decreased the size of the Fed’s balance in a process which is named quantitative tightening, planning to decrease it from US$4.5 trillion to US$2.5 – 3 trillion in 4 years. Jerome Powell called “on automatic pilot” to the monthly reduction of US$50 billion. However, global asset prices collapsed by the end of 2018.
In Q3 2019, he made an announcement that the Fed would return to expanding its balance sheet which led to a global rally in assets in Q4 2020 and also pushed valuations to the highest levels since 1999 to 2000.
In Q1 2020, he launched a series of actions which have never happened before to face the financial market impact of the Covid 19 pandemic. It included a dramatic expansion of the Fed’s balance sheet and introduction of new tools including the direct purchase of corporate bonds and also direct lending programs. He emphasized that monetary policy alone without an equivalent fiscal policy response from Congress would be able to widen income inequality. What he was done earned him bipartisan praise including from Trump.
BNN Bloomberg in reviewing 2020, said that Powell showed complete dominance over financial markets, even though there were the challenges of the year.