Precedent President

   Rather than renominate Janet Yellen to a second four-year term as chair of the Federal Reserve Board, as has been customary when a new president takes office, Donald Trump passed over her and picked another board member, Jerome Powell, instead. Powell is known as a moderate in his positions.
   Why the president changed this precedent is open to speculation, but a likely reason could be that Powell's background and business leanings are near the top of possibilities. News reports point out that Powell is a deep-rooted establishment Republican with strong ties to the financial industry, as a lawyer and an investment banker.
   This suggests that Trump picked Powell because he is more likely to follow the president's preferences, so the Fed's monetary policy would be more in line with the government's fiscal policy. His appointment as chairman must still be approved by the Senate.
   Yellen will remain as a member of the Fed's board of governors after her term as chair expires in February.
   In his thank-you note to the president, Powell gave no hint that he would attempt to change the Fed's attitudes, and that he would follow the Fed's "longstanding tradition of monetary policy independence."
   The nomination came a day after the Fed announced it was holding its target for its key lending rate at the range of 1 percent to 1.25 percent. The same day, the Bank of England announced it was raising its key lending rate to 0.5 percent from 0.25 percent. It was the first time in a decade that the British central bank raised interest rates, and came as the United Kingdom faces potential problems as the nation makes plans to leave the European Union.