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CIBC: Powell/Brainard Difference Overblown

US OUTLOOK/OPINION
  • In the case of a Brainard nomination, CIBC wouldn't see it meaning a reversion to looser for longer policy.
  • "Brainard has been on the Fed BoG since June 2014 and has voted the same way as Powell at every meeting", i.e. she voted for hikes during the last tightening cycle of 2016-19.
  • "The FOMC is far more democratic when it comes to policy decisions than other central banks. The Chair is but one vote".
  • Fade any knee-jerk reaction to the announcement.

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