Women of the Federal Reserve: How Would they Vote?

[MongiIG]

Feb 10, 2022  |  By: Weld Royal, tastytrade

On Feb. 3, the U.S. Senate Banking Committee held a nomination hearing for President Joe Biden's three picks for the Federal Reserve—economists Lisa Cook and Philip Jefferson, and Sarah Bloom Raskin, a former Fed governor, tapped by Biden to be vice chair of supervision. If they clear the Senate Banking Committee, they need to be approved by the U.S. Senate.

Why Markets Care

Volatility has escalated in capital market benchmarks like the US indices while the Dollar traded a sharp rally for steep retreat. The volatility comes in large part from competitive rate forecasts born of an inflation response by the Federal Reserve, arguably the world’s most powerful central bank.

Markets are debating five or six rate hikes this year. What’s more, Fed Funds futures are showing a more than 30 percent probability that a 50-bps hike is set for March 16th and three hikes by the end of June.

Source: CME Group, data as of Feb. 7

Biden’s picks could change the composition of the fed’s increasingly hawkish voices.

A Senate Banking Committee Vote is set for Feb. 15 for Raskin, Cook, Jefferson and Lael Brainard, Biden’s pick for the Fed’s vice chair. Full article: https://www.tastytrade.com/news-insights/women-of-the-federal-reserve-how-would-they-vote