Lael Brainard finished her confirmation hearing for the position of Federal Reserve Vice Chair. Both S&P500 and Nasdaq moved sharply lower during the meeting, however it is difficult to say whether Brainard comments triggered today's downward move as she did not say anything groundbreaking.
Highlights from the hearing:
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We've seen distortions in demand due to the pandemic
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We don't tell banks which sector to lend to
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We thought we would see a more-rapid resolution of supply side challenges
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We still have 3.5-5m fewer jobs than pre-pandemic
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We see a large amount of missing workers in leisure and hospitality
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I still have strong confidence we will see labor force participation improve
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We want to be ready to move forward on digital currency if Congress decides to move forward
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We will bring inflation down as quickly as we can while being consistent with a strong recovery
Brainard's remarks regarding labour improvement is an interesting contrast to Richmond Fed President Barkin comments, who said that "Labor force participation is stagnant and we may need to accept that".
US500 and tech sector took a hit during Brainard's hearing. Index is currently testing support at 4693 pts which coincides with 200 SMA (red line). Source: xStation5
