GREEN LIGHT FOR TOUGH LOVE

The Fed's bias has changed; will markets care?

Lots going on today, so let’s hop to it!

By now, most everyone knows Biden decided to re-appoint Jerome Powell as Fed chair and elevate Lael Brainard to the position of vice-chair. A couple of months back, I speculated Powell would be replaced, but that didn’t pan out¹. Rather than focusing on the politics, let’s examine how the market reacted to the new…