Brainard interviewed at White Home for Fed chair: report

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Lael Brainard interviewed for the role of Federal Reserve chairman when she visited the White House last week, Bloomberg News reported, citing people familiar with the matter.

Brainard, currently Fed governor, is the only other publicly known candidate besides current chairman Jerome Powell, according to the report. President Joe Biden is expected to announce the Fed candidates soon as another opening surfaced after Randal Quarles’ resignation on Monday.

Brainard is known for being cautious about interest rates, although their views on the economy in practice have a lot in common with Powell. However, it differs from a stricter stance on banking regulation, for example in the vote on the introduction of a countercyclical buffer for banks, which would require them to hold more capital.

“Powell can hardly be called Hawkish, but Brainard, the only registered Democrat on the board of governors, is probably more reluctant,” said Marshall Gittler, head of investment research at BDSwiss Holding.

“Brainard is nominally the most reluctant of the likely nominees, although Powell has proven to be quite reluctant since a pivot in early 2019,” added Steen Jakobsen, Chief Investment Officer at Saxo Bank.

Brainard could have a more difficult verification path in the Senate than Powell, a Republican who has supporters in both parties.

US stock futures ES00, + 0.02% NQ00, + 0.14% were little changed on Tuesday morning as the 10-year Treasury TMUBMUSD10Y return slipped from 1.469% to 1.47%.

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