US bond yields and the dollar rise after Powell’s reappointment as Fed chair

The reaction of the markets seems totally disproportionate, but the announcement of the reappointment of Jerome Powell as head of the Fed for a second term has led to a rise in the US 10-year rate of nearly 10bp (1.63% this morning) and has also strengthened the USD, with the exchange rate against the euro reaching 1.1226. However, the appointment of Lael Brainard as Vice-Chairman is a guarantee that employment will not be sacrificed for the sake of fighting inflation and both (Powell and Brainard) have always voted the same way.

EnergyScan economics news

The Eurozone’s consumer confidence index fell in November, which is hardly surprising given the rebound of the pandemic and the containment measures already put in place by some States. Among the major countries, only Germany appears to be under real pressure for the moment. This could be seen in the preliminary PMIs that will be published this morning for the euro zone, France and Germany. The epidemic is also starting to pick up in the US, which is not surprising given the still relatively low vaccination rates in some states.

Apart from the PMIs, the economic agenda is very light today.

Share this news :

You might also read :

May 18, 2021

Inflation. What else?

The inflationary threat continues to take center stage, particularly in the US and probably for some time to come. Bond yields edged up and equities…
March 18, 2022

Clouds are gathering again

The equity market rally has continued in the US, but has already started to stall in Europe. The first reason is that the rebound was…
Join EnergyScan

Get more analysis and data with our Premium subscription

Ask for a free trial here

Don’t have an account yet?