New Fed Vice Chair Appointed by Biden Amid Low Chance of June Rate Hike - Economics Update

The Fedwatch tool shows a slim chance of a rate hike at the upcoming June 14 Federal Open Market Committee (FOMC) meeting, with investors believing the target rate will remain unchanged. The Biden administration has appointed Philip Jefferson as the new vice chair to replace Lael Brainard, with the president stating that his nominees will play a "crucial role" in maintaining price stability and overseeing the country's financial institutions. Reports suggest that Jefferson is aligned with Powell's efforts to curb inflation and is unlikely to push back against the Fed's current policies.