FINANCE

China Expects Fed to Stay Course Under New Chief

By Zhang Yuzhe, Dong Tongjian, Leng Cheng and Liu Xiao

If Jerome Powell is confirmed as the new chairman of the U.S. Federal Reserve, the effect on China will be limited at most, according to sources within the People's Bank of China. Photo: IC

Within China’s central bank, there seems to be a consensus that U.S. monetary policy will see continuity in the wake of Jerome Powell’s nomination as the next chairman of the Federal Reserve.

Several sources within the People’s Bank of China (PBOC) told Caixin that they expect Powell to continue the policy of his predecessor, Janet Yellen, of gradually increasing U.S. interest rates while shrinking the central bank’s balance sheet.

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