Many investors had hoped that Powell, who was nominated as chair by President Donald Trump in 2017, would be renominated by Biden for another four-year stint.
Powell’s current term, which is due to run out in February 2022, has proven positive for risk assets, with the S&P gaining 69.7% since his appointment on Feb.
12, while the odds that Federal Reserve Governor Lael Brainard would be nominated had increased to 23% from a low of 6% in September.
Traders work as a screen shows Federal Reserve Chairman Jerome Powell’s news conference after the U.S.
government bond yields, which move inversely to prices, rose on the news, with those on two- and five-year Treasuries hitting their highest levels since early 2020.
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