BigMouth Jay Powell Is Not President-Elect Dimon's First Choice For Fed Chair

Sorry, Jay, you're just not a fit with the next administration.
Author:
Updated:
Original:

With the Dimon for America campaign percolating more loudly into existence up on Park Avenue these days, it's wise to take extra notice of what JPMorgan is saying about stuff. After all, a few key members of the Dimon transition team and the Dimon West Wing likely work inside the Bank if Dimon right now, so we can get a sneak peek of what and who to expect after January 20, 2021.

dimon-v-dimon

So, following this line of thought; Jay Powell is a dead man walking...

Since the central bank chief took over in February, his public remarks have cost the market dearly — specifically about a $1.5 trillion loss in market cap, according to a J.P. Morgan analysis.
The bank's strategists specifically found that when Powell gives a news conference after a Federal Open Market Committee meeting, the S&P 500 typically drops 0.44 percentage point and has fallen each of the three times he has spoken to the media.

And don't even get JPM started about when this guy talks to Congress...

When he delivers congressional testimony or other speeches, the average decline is 0.4 percentage point, with the index falling 5 out of the 9 occasions. Adding up the occasions when Powell has spoken publicly equaled the $1.5 trillion figure.

But it's not that Powell misspeaks, thinketh the Dimon transition team, it's that he seems kinda...dumb.

Since the central bank chief took over in February, his public remarks have cost the market dearly — specifically about a $1.5 trillion loss in market cap, according to a J.P. Morgan analysis.
The bank's strategists specifically found that when Powell gives a news conference after a Federal Open Market Committee meeting, the S&P 500 typically drops 0.44 percentage point and has fallen each of the three times he has spoken to the media.

Unlike his predecessor, President Dimon will fully respect the Fed's political independence. Interest rates and other monetary policy decisions must be made with the flinty-eyed clarity of economists dedicated only the mission of the Federal Reserve and cannot concern themselves with the market optics that impact a presidential approval rating.

And he'll be sure to tell that to Fed Chair Gary Cohn on his first day.

Fed Chair Powell's remarks this year have cost the stock market $1.5 trillion, JP Morgan says [CNBC]

Related