Fed: Powell’s nomination does not change outlook for monetary policy - Wells Fargo
According to analysts from Wells Fargo, Powell’s nomination does not change their outlook for monetary policy at this time.
Key Quotes:
“Jerome Powell has been nominated to head the Federal Reserve Board. The official changing of the guard will not occur until Chair Yellen’s term expires on February 3, 2018. Not surprisingly, financial markets have not reacted strongly one way or the other on the heels of this announcement, as Governor Powell is largely expected to pick up where Chair Yellen leaves off.”
“Market participants, including us, expect Powell to continue along the scheduled path of balance sheet reductions.”
“Powell’s nomination does not change our outlook for monetary policy at this time. However, reviewing Powell’s previous public comments is an interesting exercise to discern how his views may differ slightly from the current Fed Chair. How might we view his comments on policy and financial markets?”
“Powell’s term as Fed chair is likely to represent a continuation of Chair Yellen’s monetary policies. Against the backdrop of cycle-low unemployment and modest economic growth, the new Fed chairman should be able to continue to gradually raise interest rates from historic lows. Powell’s nomination does not change our outlook for monetary policy at this time.”
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
