US president Joe Biden’s decision to re-elect Jerome Powell as chair of the US Federal Reserve – putting to an end to uncertainty and speculation of the Bank’s future – has been welcomed as a “relief” by the investment industry.
Commenting on the market reaction to Powell's nomination for a second term as Fed chair, Olivier Konzeoue, FX sales trader at Saxo Markets, said: "It seems continuity prevailed as President Biden named Jerome Powell for a second term, whilst [Lael] Brainard is nominated as vice chair." Konzeoue highlighted that US futures extended gains on Powell's re-election with the Nasdaq responding with a positive 0.45% while the S&P rose by 0.33% on Monday (22 November). Overnight, however both markets started to slide. Meanwhile, the banking sector is benefitting the most with JP Morgan and Cit...
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