Powell, 64, has been a Fed governor for five years and helped shape policy under Janet Yellen, who will leave after a single term as the first woman to lead the world's most influential central bank.
Powell will take over from current Federal Reserve Chair Janet Yellen after her term expires in February 2018.
Now a Fed governor and former financial-firm executive, Powell is expected to mostly continue with Yellen's policies. The Republican former Wall Street investment banker and native of Washington spent several years at a think tank in the capital working on government budget issues prior to joining the Fed. He was a partner at the Washington-based private equity firm The Carlyle Group and he will be the first Fed chair in 40 years without an advanced degree in economics.
Powell takes over as chair with USA monetary policy on a steady course toward gradually higher interest rates and a smaller balance sheet.
The upper chamber approved the nomination in a 84-13 vote.More news: Google Play Books now offers audiobooks with Assistant and Cast support
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In December, policy makers voted to raise the federal funds rate, which helps determine rates for mortgages, credit cards and other borrowing, to a range of 1.25% to 1.5%.
"On the bank regulatory front, Powell has been supportive of the Dodd-Frank reforms, though in recent remarks he has suggested there may be room for some streamlining". In fact, some Fed officials are not convinced that inflation is on the verge of picking up steam and in fact, they have argued that the central bank may need to slow down rather than accelerate its rate hikes. Bernie Sanders, an independent who votes with the Democrats.
On Tuesday, the US Senate confirmed Jerome Powell as the next chairman of the Fed.
One of the dissenters, Sen.
Powell, now a governor on the board of the United States central bank, is known to favour low interest rates. Elizabeth Warren, D-Mass., said she was concerned that Powell "will roll back critical rules that help guard against another financial crisis".