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Janet yellen
Photographer: Bloomberg / Bloomberg
Photographer: Bloomberg / Bloomberg
The report that the next president of the United States, Byden, will appoint the former chairman of the Federal Reserve Board (FRB) as finance secretary, was received mildly on Wall Street.
Traders familiar with former President Yellen welcomed the appointment, hoping that they could work well with the FRB to recover the US economy, which was hit hard by the novel coronavirus pandemic. Yelen noted last month that the US economy needs “continued exceptional financial support.” Wall Street was wary of the appointment of Sen. Elizabeth Warren, who is poised to tighten financial regulations targeting big banks, as finance secretary, but she no longer has to worry.
The S&P 500 stock index rose even higher in response to the news reports, finishing 0.6% higher than last weekend.
Byden to nominate former FRB President Yelen as interested Secretary of the Treasury (1)
The main views of Wall Street officials are as follows.
- Krishna Guha and Arnie Tedeschi from Evacoa ISI:
Mr. Yelen is highly qualified. He believes the U.S. economy needs to continue financial support, as well as financial policy support, and is confident that Congress will encourage additional financial support, including for the unemployed and state and local governments. . There is a high chance that you will try to use it gradually. However, he is expected to be cautious before approving the nomination and does not have much experience in political transactions.
- Peter Maroke, Executive Director of Creative Planning:
The market favors the appointment of Mr. Yeren because he is the former president of FRB and his ideas are no surprise. It is very encouraging for Mr. Byden to have an eye on the market and the economy. It’s a very safe pick because the market has considered the possibility of Senator Warren. It is also exciting for Yelen to become Prime Minister of Finance.
- Lynx Equity Analysts KC Large Kumar and Jahanala Nisar:
Definitely a great choice. Mr. Yelen was listed as one of the top candidates for Secretary of the Treasury, but if he is truly nominated, all his anxieties will disappear from the market. Given Mr. Yelen’s solid skill and inner capabilities, I can hear the voice of relief. Given that he had problems with the management of major banks when he was chairman of the FRB and was more prone to loosening policies, banks would be the most reassuring.
Original title:
Yellen News ‘Sigh of Relief’ for Markets: Wall Street Reacts （抜 粋）
