NEW YORK (Reuters] – President Joe Biden has nominated Jerome Powell as Federal Reserve Chair for a fourth four-year term. The nomination extends a tenure that started somewhat accidentally, endured harsh criticism from Donald Trump and positions Powell to continue the largest overhaul of monetary policies since the 1970s.

Lael Mindard, a Federal Reserve member, was chosen as vice chair.

MARKET REACTION:

STOCKS: S&P stock futures added slightly to gains and were up 0.37%, pointing to a firm Wall Street open.

BONDS – The benchmark 10-year bond yield edged up to 1.5960%. The yield on the 2-year note rose to 0.55659%

FOREX: A small gain was reversed and the exchange rate rose by 0.3%.

COMMENTS:

GREGORY DACO CHIEF U.S. ECONOMIST, OXFORD ECONOMICS, NEW YORK

    “It’s probably the best of all outcomes. A dynamic couple at Fed’s helm ensures consistency from a policy perspective. In fact, Fed chairs and vice chairs are two of most qualified candidates. This is a good decision. This decision will make sure that we have the correct type of staff to help us navigate the second phase of the recovery. It will be difficult with high inflation, and there will be questions about whether or not the Fed should tighten its monetary policy.

    “I would expect confirmation in the Senate to be certainly straight forward given that Powell has strong bipartisan support. He should be confirmed by the Senate, even if he does lose a few votes from the Democratic side.”

RANDY FREDERICK MANAGING DIRECTOR TRADING AND DERIVATIVES CHARLES SCHWAB AUSTIN, TEXAS

“Markets like predictability and so they are reacting positively. They don’t like uncertainty and while Brainard may have been a fine choice, the markets would not know what to expect from her even though the general consensus was that it meant lower rates for longer, but we don’t know that for certain.”

(Compliled by the Global Finance & Markets Breaking News team)