Analysis: BlackRock's Rieder as Fed Chair Could Boost Short-Term Treasuries

Deep News01-19

According to InTouch Capital Markets, the selection of BlackRock's Rick Rieder as the next Federal Reserve Chair could be beneficial for the U.S. Treasury market. Compared to former Fed Governor Kevin Warsh, "Rieder is perceived as more dovish," which would be positive for short-term markets, stated senior analyst Kit Lowe based in Sydney. "As an external candidate with extensive experience in the bond market, his appointment would be viewed positively by the market." Simultaneously, the U.S. dollar could potentially weaken. A scenario with Rieder as Fed Chair and JPMorgan Chase CEO Jamie Dimon as Treasury Secretary "would be a dream combination for the market." "Dimon would provide credibility for controlling the deficit"; However, the likelihood of such a combination occurring is probably less than 5%, as it would require replacing the current Treasury Secretary, Janet Yellen.

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