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Washington

Jerome Powell tapped as next Federal Reserve chairman

Jerome Powell, governor of the Federal Reserve, speaks during a Senate Banking subcommittee hearing in Washington, D.C., U.S., on Thursday, April 14, 2016. Powell urged lawmakers not to overemphasize the impact of regulation on bond market liquidity. Photographer: Drew Angerer/Bloomberg *** Local Caption *** Jerome Powell

Jerome Powell was nominated chairman of the Federal Reserve by President Donald Trump in a White House ceremony Thursday.

He would succeed Janet Yellen, whose four-year term as chairwoman ends in February.

Mr. Powell joined the Federal Reserve board of governors in 2012, representing the New York region. He was reappointed in 2014 by President Barack Obama to represent the Philadelphia region. He was a partner at Carlyle Group from 1997 to 2005, where he founded and led the buyout firm's industrial group. He also served as Treasury undersecretary for finance under President George H.W. Bush.

Matt Toms, chief investment officer of fixed income at Voya Investment Management, said Mr. Powell represents a "marginal change" from Ms. Yellen. With gradual interest rate hikes and balance sheet wind down already in motion, "the biggest difference between the two of them is on the regulatory front," Mr. Toms said in an interview. "We think Powell would be perceived as someone who is willing to lean back toward a lighter regulatory touch," which could have a positive impact for the banking sector, he said.