Economics
Wall Street Wonders About a Fed Without Powell as Wait Goes On
- Replacement of market-friendly Fed chief seen as ‘shock’
- Institutional credibility means market ripples could be brief
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The longest wait in the modern era for news about who will chair the Federal Reserve is triggering debate in financial markets about the impact of any unexpected replacement of Jerome Powell at the helm.
For months, economists and investors alike have anticipated that Joe Biden would tap Powell for another term -- reestablishing a tradition of a first-term president sticking with the predecessor’s Fed chief. But the amount of time it’s taking Biden, along with speculation he could be replaced by board member Lael Brainard, has seen doubts creep in.