Key Takeaways

  • Congress out for Memorial Day break.
  • Powell to White House for Tuesday meeting.
  • Fed FOMC meeting approaches June 14-15, 50bps hike seems most likely.
  • Will new Governors have any impact?
  • Biden meets with leaders of Japan, India and Australia to explore trade partnership.
  • Did Georgia primary impact Trump’s role in Republican Party?

Fed

The White House has announced that President Biden will meet today with Fed Chair Jay Powell. It is not that unusual for the  President  and Fed Chair  to talk,  and Biden has  made clear he will not try to jawbone Powell on policy. The Fed Chair and Treasury Secretary meet regularly, and this has been true for Powell and Yellen.

I worked with Jay Powell when he served in Bush 41 Treasury and he was widely viewed as a strong policy person with experience on Wall Street. It is this solid respect that had him nominated by both Trump and Biden, and awarded him the praise he won during the pandemic.

The White House meeting occurs as the Fed’s Federal Open Markets Committee (FOMC) prepares to meet again on June 14-15.

A month ago, there was talk as to whether the FOMC would put its foot on the rate accelerator and move rates up 75bps, but at the press briefing after the May meeting Ch...

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