On Sunday, Brian Deese, head of the National Economic Council, reiterated that a choice could be made in the “coming days”.
“The president has spent a lot of time on this issue,” Deese said on “Fox News Sunday.”
Powell, a Republican appointed by former President Donald Trump, led the US economy through the Covid-19 pandemic and early recovery, unleashing unprecedented amounts of stimulus to help stave off a recession. recession even deeper.
He’s a familiar face, and Wall Street thinks it’s more likely that Powell will be asked to stay. But it is not one.
A recent ethics scandal that prompted the Fed to change its investment rules by senior officials has also eroded support for Powell.
Lael Brainard, who currently serves as governor on the Fed’s board, is seen as the top alternative. Biden met with Powell and Brainard earlier this month.
“Acknowledging Powell’s strengths, I still think the big threat to his re-appointment is a smart, savvy woman, known to the market, monetary policy expert. and regulation, climate risks and fintech,” said Sheila Bair, Federalist. Deposit Insurance Corporation from 2006 to 2011. “If this Regulatory Authority prioritizes diversity, it seems that Brainard is a no-brainer.”
Still, Powell has supporters.
“I think Jerome Powell has a proven track record and Chairman Powell should be reappointed,” Democratic Senator Jon Tester said on NBC’s “Meet the Press” program on Sunday.
Watch this space: With inflation rising at its fastest pace in three decades, sparking debate over whether the Fed should move faster to pull back support for the economy, investors are closely monitor Biden’s decision.
According to ING’s Robert Carnell, Brainard is “regarded as slightly more dovish than Powell”. That means she’s in favor of waiting longer to raise rates from near zero.
“In our view, compared to Powell Brainard will be more focused on the overall labor mandate and more willing to maintain a more accommodative policy for a longer period of time,” Citi strategists said in a note. a recent study.
But they note that markets still think Powell “is the path of least resistance” and has the edge.
Air travel spikes ahead of Thanksgiving holiday
Airports haven’t been as busy as this since the start of the pandemic, with travel skyrocketing in the days leading up to Thanksgiving.
Spokesperson Lisa Farbstein said it was “the highest checkpoint volume since passenger volumes were carried in early 2020 as a result of the pandemic.”
Farbstein said another 2 million were shown on Saturday.
One factor could be high oil prices, which executives expect to dampen earnings in the coming quarters.
Incoming Southwest CEO Bob Jordan told analysts late last month: “It’s not just the underperformance as we continue to increase, it’s also the significant increase in the price of motor fuels. fly”.
Investors are also worried about the return of Covid-19 restrictions in Europe as cases increase in the region.
“Reopening stock trading is also happening for airlines and hotels in particular,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, told clients on Friday.
CVS will thrive. So why is it closing stores?
CVS’s recent announcement that it will close 900 stores over the next three years – about 10% of pharmacies – may have caught some shoppers off guard, Nathaniel Meyersohn, my CNN Business colleague pointed out. out.
CVS closed 244 stores between 2018 and 2020, but it still has more than 9,900 locations. That’s more than Walmart, Target, Kroger and Costco combined.
CVS is also revamping its retail strategy to focus on healthcare. Its stores will now have three distinct models. Some will provide primary care services. Others will be medical centers with on-site nutritionists, practicing nurses, and laboratory services. Some traditional locations will still focus on selling confectionery, shampoo and other small items.
“You want to sell high-dollar, high-margin healthcare services versus greeting cards,” said Deutsche Bank analyst George Hill.
However, business decisions can have social costs. Drug store closures can harm local communities, making it difficult for people to access medicines and other essentials.
Report the results of Urban Outfitters and Zoom Video after finishing.
Also Today: US Existing Home Sales for October post at 10 a.m. ET.