Market Puts off Bets Against the Chair Pick for the Federal Reserve
Treasuries jumped above 1.6% anticipating FED to increase interest rates sooner
Globally market put off bets against the nominee for the next Federal Reserve’s chair after President Joe Biden nominated Jerome Powell to lead the Federal Reserve for a second term.
Following the nomination, the market anticipates FED is likely to increase interest rate sooner. Treasury yield immediately jumped with the 10-year yield surged above 1.6% aiding to the banking stocks in the U.S.
The bet on interest rates increase also favored the dollar.
S&P 500 ended lower while the Nasdaq slipped to negative territory following the announcement.
