President Donald Trump nominated Jerome Powell to run the Federal Reserve once current Chair Janet Yellen's term expires, in a move widely expected and one unlikely to disturb the roaring stock market.
Trump made the announcement Thursday afternoon.
The move follows months of guesswork on who might be named to head of central bank, whose aggressive policies have been considered central to a climate of low interest rates and booming asset prices.
Powell will have his work cut out from him in 2018, with investors and economists alike searching for any sign of latent inflation or wage growth. While recent employment report from the U.S. Department of Labor have shown relatively stable job creation over the past six months, doubts over the strength of prices and wage remains.
Source: Bureau of Labor Statistics, U.S. Labor Department
Bond experts have been closely following the yield curve, which has gotten to its flattest level since before the financial crisis. The spread between 2-year note yields and 10-year yields has been testing lows unseen since before the financial crisis.
The spread between the U.S. 10-year Treasury yield and 2-year yield fell to 0.785 during the day.