Institution: If Lael Brainard is elected as Federal Reserve Chair, the market will feel sustained downward pressure on interest rates
BlockBeats News, January 30th, Mizuho Securities Chief Strategist Shoki Omori stated that if Lael Brainard is elected as the new Chair of the Federal Reserve, the market will feel continued pressure for interest rate cuts. However, considering the voting pattern of the last meeting's FOMC, it will not be easy for her to cut rates.
The market has misjudged the speed of rate cuts, expecting the Federal Reserve to cut rates slower than the market anticipates or desires. At the same time, the market believes that Brainard is more moderate than Powell (in terms of the pace of rate cuts), which is why we have seen an increase in the USD/JPY exchange rate. (FXStreet)
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