In the News

Biden renominates Powell as Fed Chairman, Brainard as vice chair

NEW YORK, November 22 (Reuters) - Federal Reserve Chair Jerome Powell was nominated for a second four-year term by President Joe Biden on Monday, extending a tenure that began somewhat by chance, survived blistering criticism from former President Donald Trump, and now positions the ex-investment banker to finish the most consequential revamp of monetary policy since the 1970s.

Lael Brainard, the Federal Reserve board member who was the other top candidate for the job, will be Vice Chair, the White House said. read more

MARKET REACTION:

STOCKS: The S&P 500 (.SPX) were up 0.72% after futures reacted positively to the news.

 

COMMENTS:

JUAN PEREZ, FX TRADER AND STRATEGIST, Monex CONSULTING, WASHINGTON

“At the moment, it seems the buck is welcoming news of Powell’s continuation, and we believe it is fair since he has steered the ship that is monetary policy relatively well throughout unprecedented times. Naturally, Lael Brainard, the more dovish potential candidate, not getting the nod is a break for those who strongly believed she would match the dovishness of ECB’s Christine Lagarde. We think this combo of China stimulus, Japan stimulus, and hesitation from central banks on the other side of the Atlantic plays well for the buck and only impressive indicators can change that tune.”

JOHN DOYLE, VICE PRESIDENT OF DEALING AND TRADING, Monex INC., WASHINGTON

“The decision was mostly expected. I think the knee jerk reaction is one of relief for markets because Powell is a known entity and we know what to expect from him. I would not call him the hawkish pick but he is less dovish than Brainard. The dollar is gaining as interest rate hike expectations begin to firm for next year.”

 

Compiled by the Global Finance & Markets Breaking News team
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