Jerome Powell Tapped by Biden for Second Term as U.S. Federal Reserve Chair

Jerome Powell Tapped by Biden for Second Term as U.S. Federal Reserve Chair

Arguably the most dovish chairman in recent fed history, Jerome Powell, will continue to helm the U.S. Federal Reserve in a post-pandemic economy. Markets reacted well, with USD up and equities looking Bullish before markets open.

Biden Taps Powell

In an official statement, the White House commended Powell for his work stabilizing the U.S. economy through the pandemic. The White House cited the “over 5.6 million jobs” and “unemployment [falling] to 4.6%- two years faster than projected” as a “testament to decisive action by Chair Powell”.

The White House added 3 vacant seats on the Federal Reserve Board of Governors, with the President intending to make those appointments in early December.

This announcement comes within a month of the Fed’s decision to begin tapering, as debate surrounding inflation rates’ transitory nature is still present.

Market Response – US Dollar to Fresh 2021 High

Chart prepared by James Stanley;

After the announcement, USD was up, hitting fresh yearly highs.

Chart prepared by Eric Villalobos;

Equities markets saw a quick bullish push.

Week Ahead

This announcement comes a day before Tuesday’s developed world November PMIs and two days before the U.S. PCE Deflator. Stay tuned for DailyFXs’ macro-economic coverage.

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