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On Tuesday, current U.S. Federal Reserve Chairwoman Janet Yellen will begin her final meeting as her term expires at the end of the week. The Federal Open Market Committee which will begin on Tuesday and is set to conclude with a statement on Wednesday afternoon.

Yellen who would be leaving her post on Friday is set to be replaced by Federal Reserve Board member Jerome Powell who was nominated by U.S. President Donald Trump last year to replace Yellen was given the final approval to be the next Federal Reserve chairman last week.

During Yellen’s four-year term, the chairwoman has shown an effective decline in the unemployment rate of the country while the inflation rate remained low. Back in December, the unemployment rate stood at around 4.1% with the Federal Reserve not expecting the numbers to decline following three rate hikes in 2017.

However, the Federal Reserve has also hinted late last year of three more possible interest rates this year has raised market hopes of a continued economic growth in the coming months.

Rate Increase Expectations

Due to the ongoing Federal Reserve policy meeting for catalysts, the markets particularly Wall Street has expected a continuous economic growth in the coming months following the pickup in the economic growth during the past couple of months led by rising interest rates as well as the recently passed U.S. tax overhaul.

Reports have recently revealed that there are expectations for the gross domestic product to grow by 2.9% compared to last year which is one point higher compared to the numbers forecasted back in July.

Some have stated that they expect the U.S. Federal Reserve to raise interest rates faster than most market expectations given the recent economic conditions as well as the growth outlook of the market on the global economy. Others have also stated on how the recent increase in interest rates have helped equity markers.

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Incoming Fed Tasks For Powell

As Powell takes over as the chair of the Federal Reserve this coming weekend, the current Federal Reserve governor will be facing a number of challenges including the balance sheet of the Federal Reserve without increasing short-term interest rates as well as disrupting the marker.

As analysts would be expecting three interest rate hikes following the three which were implemented last year, Powell is most likely expected to push through with Yellen’s ideas and support the possibility of the economy getting a boost from the tax cuts signed by U.S. President Donald Trump during the end of last year following expectations of an increase in business as well as consumer spending.

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