“Chair Powell and Governor Brainard have similar views on monetary policy,” Goldman Sachs (GS) welcomes US President Joe Biden’s decision to nominate Jerome Powell as the Fed Chairman for the second term and Richard Clarida for Vice Chair’s post in their latest analytical report.
“Both believe that the current rise in inflation reflects transitory (but not necessarily short-lived) factors, while emphasizing that the FOMC would use its tools to preserve price stability if needed,” adds the US-based bank.
GS also said, “Powell and Brainard have also emphasized that they consider a broad set of indicators to gauge progress on the Fed's broad and inclusive employment goal, although Powell indicated in November that maximum employment might look different from pre-pandemic conditions.”
Additional quotes
The continuity in Fed leadership likely signals continuity in the current monetary policy stance, and we continue to expect liftoff shortly after tapering ends with the first hike in July 2022, the second in November, and a pace of two hikes per year thereafter.
Vice-Chair of Supervision, the open Governor's seat, and the seat left open by Governor Brainard. The White House has indicated that President Biden will make these appointments beginning in early December
Read: Betting on hawkish Fed
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
AUD/USD bulls eye 0.6660 resistance confluence and RBA Interest Rate Decision
AUD/USD bulls take a breather around 0.6620, making rounds to a two-week high amid Tuesday’s sluggish session as Aussie pair traders await the Reserve Bank of Australia’s (RBA) Interest Rate Decision. The quote remains sidelined after rising in the last three consecutive days.
EUR/USD struggles to defend corrective bounce off 1.0700
EUR/USD retreats towards 1.0700 amid the early hours of Tuesday’s Asian session after a volatile day. That said, the Euro pair initially cheered the downbeat US data before paring the gains and closing the day around the week-start levels.
Gold grinds higher past $1,950 amid downbeat United States data
Gold stays on the front foot aroud $1,961, after an upbeat start of the week, as the bullion traders seek more clues to extend the latest rebound during early Tuesday in Asia. The precious metal cheered downbeat United States statistics and dicey markets to regain upside momentum the previous day.
TRX, ADA price fall over 5% as Tron and Cardano founders show support for Binance and CEO
Tron (TRX) and Cardano (ADA) prices are down by more than 5% each as the two altcoins follow in the footsteps of Binance Coin (BNB), which fell 10% after the US Securities and Exchange Commission (SEC) filed a civil complaint against Binance and CEO Changpeng Zhao (CZ).
Reserve Bank of Australia Preview: AUD/USD ready for another hike? Premium
The Reserve Bank of Australia (RBA) is set to announce its monetary policy decision on Tuesday, June 6 at 04:30 GMT. The market consensus is for the central bank to keep its monetary policy unchanged.