Possibly by Tuesday night we should know whether there will be continuity in the Fed monetary policy or a new Dovish twist. President Biden’s popularity ratings are disintegrating as fast as they rose and the administration is coming under a lot of pressure to tackle inflation. Chair Powell is likely to navigate market expectations without causing too much disruption, whereas a new Fed Chair Brainard could set the tightening policy, which is being priced in, on a new path resulting in a market unwind.
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