Some news has just landed. . .
Grandmaster Jay, or Jay Powell for his friends, has been reappointed by Joe Biden as chairman of the Federal Reserve for a second term. Lael Brainard, who is considered his closest rival, is named vice chairman. (The FT story is here.)
So, what do markets think? Well, judging by the band, not much. The dollar has strengthened somewhat against the euro, but as half of the continent appears to be closing in again, we suspect that larger factors are at play. US stocks are also all green. But just by touching – the S&P 500 is 0.7 percent on pixels. However, there is a significant movement in the 10-year treasury yield – by 6 basis points to 1.6 percent. Gold, meanwhile, slipped nearly 2 percent to $ 1,186.
Usually with this kind of announcement, we will bring you some quick overviews of the good and great of macro strategy on what Grandmaster Jay’s return to markets means. But since it’s 2021, we’ve been thinking of who better to get a response from than the large masses of online retailers who spend their days on r / wallstreetbets? After all, unlike most strategists, they actually move markets.
Of course there is already a wire go. And the vibe seems to be, well, ecstatic.
Here is a screenshot of some of the comments:
Our favorite so far “Inflation is transient. But I’m here to stay motherfucker ”. Much more entertaining, and just a tad less informative, than most sales notes.
You might think it’s under even FT Alphaville to report on this. Well, there’s a chance you’re right. But with the major meme stocks – AMC, Tesla, Gamestop, etc. – refusing to deviate from their stupid valuations, and still increase option trading, it seems that this group of globally coordinated retail traders is going nowhere soon. Maybe it’s time to listen?
Joe Biden nominates Jay Powell for second term as Fed chairman – FT