It would seem like a pretty good time to take over as chairman of the Federal Reserve.
Jerome Powell has won Senate confirmation to head the U.S. central bank, inheriting an economy on a roll, a booming stock market and unemployment at a 17-year low.
He will succeed Janet Yellen, the first woman to serve as Fed chairman, when her term ends on Saturday, Feb. 3.
The position is considered the government’s most powerful economic job.
But while the immediate horizon appears clear, Powell faces the risk that today’s sturdy economy, low inflation and rising stock market could reverse course in the coming months or years, forcing him to come up with the right remedies.
One of the biggest threats could come from inflation, which over the past six years has been extremely low. Some forecasters, however, worry that the days of benign inflation readings could be coming to an end, especially if tight labor markets lead to accelerating wage gains.
