Powell Pick Seen Positive for Risk Despite Knee-Jerk Selloff
- Strategists see elimination of uncertainty as welcome move
- Focus turns to potential for quicker-than-expected tapering
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Jerome Powell getting a second term as chair of the Federal Reserve is positive for risk assets, despite the knee-jerk selloff to his renomination, according to strategists.
One of their key takeaways is that stocks should benefit from reduced uncertainty and the market should calm in coming days. Another is the dollar should get some support from the possibility of faster-than-expected Fed tapering.