It’s a well-known fact that the Federal Reserve System, which refers to the central bank of the U.S., is responsible for providing the nation with a stable, flexible, and safe financial system. You’re also probably aware of Jerome Powell, who is the present Fed Chair.
But do you know that Powell is the richest member of the Federal Reserve Board of Governors? He is also one of the richest individuals who’ve ever held the position of the Fed Chair. Interestingly, Jerome Powell is the first chair of the Fed since 1987 who doesn’t hold a doctorate degree in economics.
If you’re interested in learning about Jerome Powell’s net worth and how he made it, continue reading this article till the end.
Jerome Powell’s Net Worth
As revealed by various websites, Jerome Powell’s net worth stands at $50 million.
Early Life of Jerome Powell
Jerome Hayden Powell was born in Washington D.C on February 4, 1953. He is one of six children born to Jerome and Patricia Powell. His siblings are Matthew, Susan, Libby, Tia, and Monica. His maternal grandfather was a lecturer at the “Georgetown Law School” and the dean of the “Columbus School of Law.”
Education of Jerome Powell
In 1972, Powell graduated from “Georgetown Preparatory School.” After that, he attended “Princeton University” where he obtained his Bachelor of Arts degree in politics in 1975. Powell continued his studies at “Princeton University” and submitted “South Africa: Forces for Change” which was his senior thesis.
In 1975, Powell did an internship for a year under the supervision of Pennsylvania senator Richard Schweiker. After that, he went to the “Georgetown University Law Center” and obtained his Juris Doctor degree there in 1979. Powell was also the editor-in-chief of the student-edited scholarly journal “Georgetown Law Journal.”
Early Career of Jerome Powell
Jerome Powell started his career in New York City in 1979 with a clerical job in the “United States Court of Appeals for the Second Circuit” under Judge Ellsworth Van Graafeiland. He joined “Davis Polk & Wardwell,” an international law firm, as a lawyer in 1981. He worked in the firm till 1983.
Powell worked at another law firm “Werbel & McMillen” from 1983 to 1984. After that he became an investment banker and joined the New York City-based investment bank “Dillon, Read & Co.” He served the bank from 1984 to 1990 and rose to the position of vice president.
Political Career of Jerome Powell
In 1990, Jerome Powell moved back to Washington. Under President George H. W. Bush’s administration, he served as an Assistant Secretary of the U.S. Department of the Treasury. Later, he became the Under Secretary of Nicholas F. Brady, the Treasury Secretary. Powell was responsible for policies on the Treasury debt market, financial institutions, and associated areas.
In 1993, Powell became the managing director of the “Bankers Trust” under the administration of President Bill Clinton. He resigned from the historic financial institution in 1995. In 1997, he became a partner at “The Carlyle Group,” an asset management and private equity firm. In 2005, he quit the firm.
After that, Powell established “Seven Capital Partners,” a private investment firm. From 2010 to 2012, he was a visiting scholar at the “Bipartisan Policy Center,” the think tank based in Washington, D.C. He persuaded congressional “Republicans” to increase the debt limit as a consequence of the 2011 U.S. Debt Ceiling Crisis. He worked on a $1 annual salary.
The work of Powell with the “Bipartisan Policy Center” impressed President Barack Obama. In December 2011, he received the nomination from President Obama to the “Federal Reserve Board of Governors.” Powell emerged as a well-known “Republican” who actively took part in Federal Reserve’s internal debates.
The Senate confirmed the nomination of Powell in May 2012. On May 25, Powell assumed his responsibilities in the “Federal Reserve.” He replaced Frederic Mishkin who had resigned before his term was completed.
In January 2014, Jerome Powell received a nomination for another term in “the Fed.” In June 2014, his nomination was confirmed. His 14-year term will be completed on January 31, 2028.
He supported the “Consumer Protection Act” and the “Dodd-Frank Wall Street Reform” but suggested a more strategic and efficient application.
In November 2017, Powell received from President Donald Trump as the next chairman of the “Federal Reserve.” On December 5, 2017, his nomination was confirmed by the “Senate Banking Committee.” His only opposition was “Democratic” senator Elizabeth Warren. On January 23, 2018, Powell won the position by strong bipartisan support.
On February 5, 2018, Powell became the 16th chairman of “the Fed.” On May 23, 2022, he was sworn in for a second term as Chair of the Fed. This term will end on May 15, 2026.
Criticism Received from Donald Trump
Donald Trump has criticized Jerome Powell multiple times. These include his decisions of opposing decreasing federal interest rates, making monetary policy stricter, and establishing quantitative easing. In 2019, President Trump has even compared Jerome Powell to the Chinese President, mentioning him as a bigger enemy than Xi Jinping.
Family & Personal Life of Jerome Powell
In 1985, Powell married TV series writer, producer, and filmmaker Elissa Ann Leonard. He has three children with Elissa: Samuel, Susie, and Lucy. His home is in Chevy Chase Village in Maryland.
Jerome Powell served on the Chevy Chase Club’s board of governors. Additionally, he has served on the boards of a number of non-profit organizations such as the “Bendheim Center for Finance,” “The Nature Conservancy,” and “DC Prep,” a public charter school.
How Did Jerome Powell Gain His Net Worth?
As the Fed Chairman, Jerome Powell earned a yearly salary of $203,500 in 2019. The number has increased since then. According to a document from the OPM (Office of Personnel Management), a screenshot of which was tweeted by David Gura of National Public Radio, the Chair presently earns $226,300 annually.
However, most of Jerome Powell’s net worth was built during his tenure with the private equity firm “The Carlyle Group.” His investments and several smart decisions are the major reasons for the disproportionate wealth of Jerome Powell compared to other Fed governors.
