Former Carlyle exec named to Federal Reserve

Jerome Powell, who founded and led The Carlyle Group’s industrial division within its US buyout fund, has been named to the Federal Reserve Board of Governors.

The US Senate has named Jerome Powell, a former partner at The Carlyle Group, to the Federal Reserve Board of Governors.

Powell was nominated by President Barack Obama last December to fill one of two vacant board seats along with Harvard University economist Jeremy Stein, who will fill the other vacant position. From 1997 to 2005, Powell was a partner at Carlyle, where he founded and led the industrial group for the firm’s US buyout fund. He previously held the position of undersecretary of the treasury for finance for President George H.W. Bush, prior to which he was a lawyer and investment banker at Dillon Read & Company.

At the time of Powell and Stein’s nominations, President Obama said in a statement that “their distinguished backgrounds and experience coupled with their impressive economic and monetary policy make them tremendously qualified”.

President Obama’s successful appointing of a former private equity executive to the Federal Reserve Board comes just days after the Obama campaign released an advertisement criticising private equity firm Bain Capital, founded by Republican Party nominee Mitt Romney, for its investment in the now-bankrupt GS Industries. 
 
Former private equity executives have in the past gone on to hold positions within the US Treasury. Last December, former US undersecretary of the treasury for domestic finance Jeffrey Goldstein rejoined Hellman & Friedman as a managing director. Friedman, who was also counselor to the secretary of the treasury, had previously worked at Hellman & Friedman before leaving in 2009.