A Brainard Fed May Mean Lower for Longer: Wall Street Reacts
- Many see Treasury yields dropping on a Biden Brainard pick
- Markets could be surprised by a hawkish turn, strategist says
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The biggest signal yet that Federal Reserve Governor Lael Brainard is a major contender to replace Jerome Powell as Fed chair has triggered a wave of speculation over how financial markets would react if President Joe Biden announced her as his nominee.
Bloomberg News reported on Monday that Brainard was interviewed for the top job at the U.S. central bank when she visited the White House last week. The longest wait for the announcement in the modern era had already spurred uncertainty that Powell -- long thought to be heading for reappointment -- will win another four years when his current term ends in February.