US Fed chair's biggest problem will be staying out of Trump's shadow | Kenneth Rogoff

Jerome Powell is a sane and sober choice to succeed Janet Yellen - but he must uphold the Federal Reserve's independence

With the appointment of Jerome Powell as the next chair of the United States Federal Reserve, Donald Trump has made perhaps the most important single decision of his presidency. It is a sane and sober choice that heralds short-term continuity in Fed interest rate policy, and perhaps a simpler and cleaner approach to regulatory policy.

Although Powell is not a PhD economist like current Fed chair Janet Yellen and her predecessor, Ben Bernanke, he has used his years as an "ordinary" governor at the Fed to gain a deep knowledge of the key issues he will face. But make no mistake: the institution Powell will now head rules the global financial system. All other central bankers, finance ministers, and even presidents run a distant second.

Related: Trump names Jay Powell to replace Janet Yellen as Fed chief