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Bank Indonesia welcomes proposed Powell's nomination
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Bank Indonesia Governor Agus Martowardojo expressed hope that fair policies and good communication would continue under the new chairman of the US Federal Reserve. (JP/Anton Hermansyah)
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ank Indonesia (BI) Governor Agus Martowardojo expressed hope that the United States Federal Reserve could continue its policy and the good communication that it currently has after the nomination of its governor, Jerome Powell, as the new chairman.
"We will see who will be appointed [by US President Donald Trump] but we welcome Powell," he said on Thursday. "Policies implemented under [Federal chairwoman Janet] Yellen will continue [under Powell]. This is good for both the US and global economies."
Agus praised Yellen's communication of her institution's policies to the market to prevent a shock to the global economy that might be caused by the Fed's policies.
Read also: Trump said to pick Powell as Fed chairman, replacing YellenTrump plans to nominate Powell to helm the US central bank, Bloomberg reported, quoting three people familiar with the decision, which will be announced on Thursday (US time).
Powell is seen to maintain Yellen's gradual approach to lifting interest rates and balancing the Fed's balance sheet.
John Taylor, the other candidate, is seen to have a more hawkish stance compared to the chairwoman, whose tenure will end in February.
The market appears to be "relieved with the prospect of consistency in appointment of the next Federal Reserve chair," IG Asia strategist Jingyi Pan wrote in a note as quoted by Bloomberg.
The rupiah appreciated by 27 points, or 0.2 percent, as of Thursday afternoon, compared to previously, when it was close to Rp 13,553 per US dollar, the strongest since Oct. 24. (bbn)
