Key Takeaways

  • Chair Powell got through Senate confirmation hearing and is on path to second term.  Biden nominates three more Board Members: two blacks, two women: more diversity.
  • Fed rate decisions: surprise vs telegraph – Fed telegraphing March increase.
  • Congressional appropriators meet to try and find agreement on budget for current fiscal year as February 18 deadline approaches.
  • Biden/Democratic agenda: voting rights legislation dies but hope for some election reform.

Powell and Fed

Last week Fed Chair Jay Powell testified before the Senate Banking Committee and escaped with no damage done to his pathway to confirmation for a second term as Chair.  Much of the discussion was focused on inflation and Powell made clear the Board would take whatever steps are needed to keep it under control.

Over the years Fed Chairs have debated the best course of major policy changes related to interest rates.  Some felt that surprise was the best weapon, making sure that no market participant had any advantage and also thought that the surprise was itself a policy tool.  As the Fed approaches a major policy move it is pretty clear that a 25bps increase will occur during the March meeting of the FOMC.  The Committee will meet this month 25-26 and I ...

Unlock this article with a FREE 30-Day Trial!

An FSI Pro, or FSI Macro subscription is required in order to access this content.

*Free trial available only on a monthly plan

Disclosures (show)

Get invaluable analysis of the market and stocks. Cancel at any time. Start Free Trial

Articles Read 2/2

🎁 Unlock 1 extra article by joining our Community!

You’ve reached your limit of 2 free monthly articles. Please enter your email to unlock 1 more articles.

Already have an account? Sign In

Want to receive Regular Market Updates to your Inbox?

I am your default error :)