WFIT

John Ydstie

The Federal Reserve is likely to raise interest rates at its December meeting, Jerome Powell, President Trump's pick to be Fed chairman, signaled Tuesday.

"I think the case for raising interest rates at our next meeting is coming together," Powell told the Senate Banking Committee at his confirmation hearing.

Copyright 2017 NPR. To see more, visit http://www.npr.org/.

ELISE HU, HOST:

Federal Reserve Chair Janet Yellen today announced that she will resign from the Federal Reserve Board once her successor, Jerome Powell, is sworn in.

Yellen is the first woman to serve as Fed chair. While her term as Fed chair ends in February, Yellen could have stayed on the board until 2024, serving out her 14-year term as a Fed governor. Instead she'll follow the practice of previous Fed leaders and leave the board once Powell becomes chairman.

Federal Reserve Chair Janet Yellen, the first woman to hold that position, won't have the opportunity to serve four more years as leader of the nation's central bank. But she leaves the Fed's top post having largely achieved its mandate to engineer full employment while keeping inflation at a level that fosters growth.

A day before President Trump was expected to name their next leader, Federal Reserve policymakers decided to hold a key interest rate steady at between 1 percent and 1.25 percent. However, analysts are still looking for a rate increase at the central bank's next meeting, in mid-December.

Pages