The US Federal Reserve, the world’s most important central bank, will soon have its first non-economist chair in almost four decades and for financial markets there is a sense of confidence that Jerome Powell, a former lawyer and private equity executive, is a welcome representative of the status quo.

Powell, who has sat on the Fed board since 2012, represents dovish continuity from the Fed chairmanship eras of Ben Bernanke and Janet Yellen.

However, while fund managers expect Powell to stay the course on the Fed’s cautious, gradual path towards tighter monetary policy and a slowly deflating balance sheet, the longer-term outlook is shrouded in uncertainty. Of particular pertinence to investors is how Powell reconciles the challenges of frothy markets and still-subdued inflation.

Read more in the Milwaukee Business Journal.