The Dow Jones Index continues to rise today. Recently soared more than 200 points after President Joe Biden has decided to nominate Jerome Powell as the Federal Reserve Chair for a second term.
At 9:53 p.m. Thai time, the Dow Jones Industrial Average stood at 35,837.26 points, up 235.28 points, or 0.66%.
Wall Street will be closed Thursday for Thanksgiving. And will be open for trading for only half a day on Friday.
Powell and Fed governor Lael Bernard are the two favorites to be named as the new Fed chairman.
President Joe Biden announced today that He has named Mr Powell as Fed chairman for a second term.
Biden also nominated Mrs. Brenard as Fed vice president.
Banking stocks surged today. Powell has been nominated for a second term as Fed chairman, as Brenard advocates for strict banking regulations.
Powell will complete his four-year term in February 2022. He took over as Fed chairman in February 2018. After former President Donald Trump nominated Powell for the post after Janet Yellen.
Analysts had previously predicted that If Biden decides to make Powell as Fed chairman for a second term, it will affect Wall Street. and the dollar strengthened While the market has confidence in Mr Powell. which in the past Mr Powell proved that He can maintain the independence of the Fed. and take what he deems right despite political pressure This was evident in the days of former President Donald Trump, who often expressed his displeasure with Powell. and the Fed’s monetary policy at that time President Trump claimed that the Fed’s refusal to cut interest rates has strengthened the dollar. and affect US manufacturers. The Fed should cut interest rates lower than Germany, Japan and other countries.
Experts also revealed that Powell favored Mrs. Bernard on Fed policy continuity. If he is Fed chairman for a second term
On the other hand, analysts point out that The stock market will fluctuate. If Biden nominates Mrs. Bernard as the new Fed chair due to lack of confidence in the direction of Ms. Bernard’s policy
However, although it is expected that Ms Brainard is more supportive of monetary easing than Powell. This will cause the Fed to delay raising interest rates. But this would also make the Fed, under Mrs. Brenard’s reins more accepting of the inflationary rally. This will result in an increase in bond yields. And it will be a negative factor for Wall Street stock market.
Banking stocks will also be under pressure under Fed chair Bernard. Because he is a supporter of the issuance of strict banking regulations.
However, although Biden nominated Powell as Fed chair for a second term, Powell had to be approved by the US Senate. While some senators are likely to oppose Mr Powell’s inauguration as Fed chairman.
Ms Elizabeth Warren, Senator of Massachusetts attacked Mr Powell earlier. It said Mr Powell was a dangerous person who undermined the US banking system. and he will prevent Mr Powell from being reappointed as Fed chairman.
“Your work history worries me a lot. by many times in the past You have made our banking system less secure. You are a dangerous person who takes the reins of the Fed. And this is my reason for opposing your next term,” Warren said Sept. 28, as Powell addressed the Senate Banking Committee.
Mrs. Warren said Powell’s easing of banking regulations would trigger a crisis like the 2008-09 crisis, and Powell considered it “lucky” that banks were still able to avoid the crash. can be big
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