Trump Said to Be Leaning Toward Powell for Fed Chair

The transcript discusses the market's reaction to the potential nomination of Powell as Fed chair. It highlights the late-day recovery in stocks and the movement of 10-year yields. The discussion includes the interpretation of hawkish and dovish possibilities in monetary policy, with Powell seen as a more dovish choice. The potential impact on equity and small banks is also considered, with a status quo outcome expected.

What was the initial market reaction to the speculation about Powell being considered for the Fed chair?

• Stocks turned green and yields increased.

• Stocks remained flat and yields increased.

• Stocks turned green and yields decreased.

• Stocks turned red and yields increased.

How does the market interpret Powell's potential appointment compared to other candidates?

• As a more hawkish choice.

• As an unpredictable choice.

• As a more dovish choice.

• As a neutral choice.

What political report was mentioned regarding Powell's potential appointment?

• A report suggesting Powell is the least likely candidate.

• A report indicating Powell is in the same camp as Yellen.

• A report stating Powell is the most hawkish candidate.

• A report claiming Powell has no political support.

What is the expected change in yields if Powell is appointed as Fed chair?

• No change in yields.

• A minor change of less than five basis points.

• A significant decrease in yields.

• A significant increase in yields.

How did Steven Englander describe the potential market reaction to Powell's appointment?

• A complete overhaul of monetary policy.

• A sharp decline in equity markets.

• A modest rally or flat response in small Valley banks.

• A major rally in equity markets.