“The market is nervous.
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,” said Randy Frederick, managing director of trading and derivatives at Charles Schwab in Austin, Texas.
The S&P 500 banks index rallied 2%, tracking a surge in Treasury yields as investors priced in policy tightening by the first half of 2022.
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