In 2018, many major global central bank presidents will expire. Jerome Hayden Powell, the new chairman of the Federal Reserve Board (Fed) after Janet Yellen retired; the People's Bank of China and the New Zealand Central Bank will also expire.
The Bank of Japan and Indonesia's central bank presidents retained the current position with high probability. No matter whether the president is new or retained, they all need to face the challenge of normalizing interest rates in 2018, maintaining economic growth and expanding asset price bubbles, how to deal with these problems, need to pay close attention.
After Yellen retired in February, Jerome Powell, the current director of the Federal Reserve nominated by U.S. President Donald Trump, become the new chairman of the Federal Reserve. For the first public appearance, Jerome Powell told Congress that the outlook for the U.S. economy "remains strong" despite the recent stock market turbulence, keeping the central bank on track to gradually raise interest rates. The signaled a gradual rate hikes. The market interpreted the testimony as being slightly hawkish, boosting the strength of the U.S. dollar and raising the yield of U.S. bonds. Most economists believe that Powell will still maintain Yellen's policy of gradual rate hike in the early stages and that the Asian Central Bank will have to follow to prevent fund flow to other countries.
Zhou Xiaochuan of the People's Bank of China is the longest-standing central bank leader in the world's 20 largest industrialized nations (G20) will step down on March. Although his style of conduct is not as clear as that of other developed central bank governors, but he has spearheaded financial reforms and boosted the yuan currency’s global clout, as well as the central bank’s policy influence. The leadership reshuffle at the People’s Bank of China (PBOC) is closely watched in global financial markets as monetary policy changes and any moves to further liberalize the financial system of the world’s second-large economy would have repercussions well beyond China’s shores.
Japan's central bank implemented ultra-easy monetary policy for many years, retains with high probability president of BOJ, Kuroda admitted that Japan is still far from achieving the inflation target of 2%. This means that the BOJ will continue its monetary-easing efforts to ensure that it meets its inflation target.
Adran Orr will take up the role at the Reserve Bank of New Zealand on March. The market believes that Orr's stance is less dove. Orr's task will be to lead the Central Bank of New Zealand into the same goal as the U.S. Federal Reserve, achieving full employment and stabilizing prices, not only focusing solely on controlling inflation.
2019 ECB President have expires, the market uncertainty increase, need to play close attention to the market volatility.