Next week in DC, the headline event for financial markets will be the hearing before the Senate Banking Committee on the nomination of Jay Powell for a second term as Federal Reserve Board Chair.  At a time of rising rates and the Fed’s tapering of their portfolio, market analysts will be interpreting every word the Chair says.

In 2018, when Powell was initially confirmed by the Senate to serve as Chair, the vote was 84 to 13; hence it is anticipated he will be approved for his second term.  As a handful of Democrats, led by Senator Elizabeth Warren, have announced their opposition to Powell’s second term in an evenly divided Senate, Powell will need Republican votes to make up for lost Democrats.  Unless there is a major slipup in the hearings, getting Republican votes should not be a problem.

Senate focus

While the Biden stimulus bill, Build Back Better (BBB) is on hold, the Senate will turn its attention to election reform.  Democrats have focused on the John Lewis Election Bill but so far have failed to get any Republican support.  Just like the BBB debate, the man in the middle is West Virginia Senator Joe Manchin who will need to support an exemption from the filibuster rule for voting rights legislation in order to overcome Republican opposition.

While the pubic action of the Senate will be on voting rights, behind the scenes I expect a lot of discussion on creating a BBB 2.0 that can win the support of Senator Manchin.  BBB is central to any chance the Democrats have of maintaining control of Congress after this year’s elections; so delay is not the end of the story in my view.

Disclosures (show)

Stay up to date with the latest articles and business updates. Subscribe to our newsletter

Articles Read 1/2

🎁 Unlock 1 extra article by joining our Community!

Stay up to date with the latest articles. You’ll even get special recommendations weekly.

Already have an account? Sign In

Don't Miss Out
First Month Free