Wall Street Opens at New Record Highs After Powell Reappointment; Dow up 150 Pts
By Geoffrey Smith
Investing.com — U.S. stock markets opened at fresh record highs on Monday after President Joe Biden said we will renominate Jerome Powell for another term as chairman of the Federal Reserve.
Lael Brainard, the Fed governor who was also in the frame for the job, will instead be promoted to deputy chair, replacing Richard Clarida when his term expires in February.
The appointments signal an endorsement of a highly pragmatic Fed policy that has been in place since the beginning of the pandemic, characterized by Powell’s refusal to be hurried into tightening. The Fed will only begin reducing its bond purchases – which currently inject $120 billion of liquidity into the economy every month – from December. Much of the liquidity created by that policy over the last two years has found its way into securities markets, pushing stocks to all-time highs and real interest rates – bond yields adjusted for current inflation – to their lowest in decades.
By 9:45 AM ET (1445 GMT) the was up 150 points, or 0.4%, at 35,752 points. The and the were both up 0.6%.
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Published at Mon, 22 Nov 2021 14:46:49 -0800