Wall Street’s faith in the Fed might soon be tested
- Federal Reserve turnover is unusually high, with four seats on the central bank’s board still awaiting presidential nominations.
- Many market participants welcome Jerome Powell, the new chair, as having market experience and signaling a degree of policy continuity with outgoing chair Janet Yellen.
- There are also fears, however, that the dwindling number of economics PhDs at the highest levels could hamper interest rate policy in coming years.
Wall Street is becoming a little too certain about the future path of US interest rates.
Markets welcomed President Donald Trump’s nomination of Jerome Powell to replace Janet Yellen at the central bank’s helm