US President Donald Trump announces Federal Reserve board member Jerome Powell as the next chair of the Federal Reserve in the Rose Garden of the White House in Washington, Thursday, Nov. 2, 2017.  Photo: Reuters

US President Donald Trump announced Jerome Powell as the next chairman of the Federal Reserve Thursday.

With Powell at his right, President Trump declared in the White House, “Today is an important milestone on the path to restoring economic opportunity to the American people." The president said the Fed requires "strong, sound and steady leadership," and Powell "will provide exactly that type of leadership."

Trump added, "He's strong, he's committed and he's smart, and if he is confirmed by the Senate, Jay will put his considerable talents and experience to work leading our nation's independent central bank."

Trump went on to say Yellen is "a wonderful woman who's done a terrific job."

"We have been working together for 10 months and she is absolutely a spectacular person. Janet, thank you very much. We appreciate it," he added.

If confirmed by the senate, the 64-year-old Powell would succeed Yellen, whose four-year term expires in early February.

In his speech, Powell said, "I'm both honored and humbled by this opportunity to serve our great country."

"If I am confirmed by the Senate, I will do everything within my power to achieve our congressional assigned goals of stable prices and maximum employment,” he added.

Powell is a former Carlyle Group LP managing director and ex-Treasury undersecretary. As a Republican, Powel was appointed to the Fed in 2012 by Democratic President Barack Obama and has earned a reputation as a pragmatic, non-ideological policymaker.

The market believes Powell would likely continue the Fed’s cautious approach toward reversing the central bank’s stimulus policies as the economy expands. During a Senate hearing in June, Powell signaled he would support changes to post-crisis financial rules, but not dismantling them.

Powell led a diverse field of potential nominees that included former Governor Kevin Warsh, Stanford economist John Taylor, and chief Trump economic advisor Gary Cohn.