Original article by Lynne Funk and Gary Siegel
Jake Remley, Senior Portfolio Manager at Income Research + Management, shared his views on President Biden’s renomination of Jerome Powell as chairman of the Federal Reserve. Jake argued that, the given the market’s perception of Powell as less dovish than Lael Brainard, the notion of more rate hikes and greater immediacy of those hikes have been reflected in the yield curve. He also noted that while rising rates will hurt bonds’ mark-to-market, higher yields will attract new capital into the asset class.
