Powell Comments Prompt Mini-Tantrum, Vice Chair For Supervision Likely Between Bostic, Raskin and Cordray

The financial media is abuzz with whether Lael Brainerd or Jerome Powell will be the next Chairman of the Federal Reserve. We have been reporting on the issue as political trade winds have blown and despite Powell’s steadily diminishing chances, we’d say that as of right now it looks likely that he will be reconfirmed. Part of this is because of the confirmation math. Powell was confirmed in 2018 with 84 votes and 68 of those Senators are still in their office.

So, during Powell’s comments two things seemed to roil markets and the diligent chorus of Fed Watchers and also seemed to contradict what seemed like common logic. Despite the risks posed by the Omicron variant, the Fed will still be discussing an accelerated taper timeline.

Most had thought, based on recent history, that the exacerbation of the healthcare situation and another potential macroeconomic risk would lead to more accommodation. Instead, a newly nominated Powell appeared to reflect the sentiments of the more hawkish elements of his Governors.

Another wrinkle in the testimony is that Powell said we should probably ‘retire’ the term ‘transitory’ when explaining inflation. Given his sticking to that term like glue over the past months in the face of rising worries and white-hot numbers in th...

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 :)