Markets climb a wall of worry, and the renomination of Jerome Powell as Federal Reserve chairman takes away one important uncertainty.
It was possible that President Joe Biden would pick Lael Brainard, who was nominated as Mr. Powell’s deputy instead, and her approval process might have hit trouble in the Senate. By leaving Chairman Powell in charge that worry was removed, meaning policy stays on its previous, exceptionally easy, course.
The market response to taking away a risk is easy to predict. Stocks and other risky assets go up, and bonds, gold, and other safer assets go down. So it was, if not to a huge extent. How prices react is one way to define an asset, and on this basis bitcoin is a risk asset, since it jumped while gold fell.
BIDEN TAPS JEROME POWELL FOR SECOND TERM AS FED CHAIR, SPURNING PROGRESSIVES