by appointing Jay Powell to be the next chair of the Federal Reserve,

replacing Janet Yellen early next year.

Jay Powell has been a governor in the Fed since 2012.

Before that, he worked under George Herbert Walker Bush in the Treasury,

has also been a private equity partner, a lawyer, and has worked at the Bipartisan Policy Centre,

which is a think-tank here in Washington, DC.

In terms of his approach to monetary policy and regulation,

Jay Powell is a centrist on monetary policy.

He has not dissented from the very gradual approach to rate rises that Janet Yellen has pushed,

or indeed, to the very transparent and gradual approach they're taking at the Fed

to reducing the Fed's $4.5 trillion balance sheet.

On regulation, it remains to be seen whether he changes the tone a little bit.

But he may be more open to easing the burden of regulation than Janet Yellen has been.

But that really remains to be seen.

He certainly doesn't seem to be a person

who wants to tear up the post-crisis regulatory system in a drastic way.

A pragmatist, a centrist, Jay Powell will take over at the Federal Reserve early next year.