Powell is succeeding Janet Yellen, whose last day at the Fed was on Friday. He graduated in politics from Princeton and in law by Georgetown.
Powell was nominated as a Fed governor in 2012 and helped craft post-crisis regulations that he supports, but he said during a November 28 nomination hearing that he believes in tailoring regulations to the risk posed by institutions.
"If the economy broadly behaves, I don't think it'll be of great effect", he said. He held position of Governor of Federal reserve since 2012, was a partner of Carlyle Group Investment Fund and served in Treasury with Republican George Bush Padre. Wall Street welcomes you with a volatility that has not been seen since June 2016, when United Kingdom voted in referendum to leave European Union.
Jon Faust, a professor of economics at Johns Hopkins University who worked with Mr Powell at the Fed, said he had endeavoured to understand monetary policy and had demonstrated a strong grasp of the subject.
The US economy added 200,000 jobs in January, with unemployment holding at 4.1 percent - its lowest level in more than 17 years.
"If the Fed raises (the) rate sufficiently to assure financial stability, there is the risk that the economy will slow too much".
One of the worries from the market is that the Fed, under Powell, will accelerate its interest rate hikes, undermining the momentum of a bullish market. While Yellen saw mostly low rates and inflation, Powell takes office as bond yields and inflation are rising.
Powell's term as a member of the Fed's board will end January 31, 2028. The oath was administered by Vice Chairman Randal Quarles. "We know that our decisions matter to families and businesses", he said, "we adopt m objectively, based only on best available evidence".