On Tuesday, the US President announced to reporters at the White House that he will reveal his candidate to lead the US Federal Reserve for the next four years in the next four days, as the US President chooses between keeping Jerome Powell, the current president of the US Federal Reserve, and Lail Brainard, a member of the Federal Reserve Committee.

Jerome Powell, a 68-year-old Republican and a former equity manager, was nominated in 2011 by President Obama to join the Board of Directors of the Federal Reserve and was appointed in February of the year 2018 as Chairman of the Federal Reserve by former President Trump.

Lyle Brainard is a Democrat and economist who joined the US Federal Reserve in 2014 after she was in the Treasury Department under Obama.

Powell and Brainard met with the US President at the beginning of November, to begin the struggle for the presidency of the largest central bank in the world in light of a very complex situation in terms of continuous high inflation, which we did not witness soon.

What matters to us as traders and away from the political reasons that support the choice of any candidate or the party that supports it is the two parties’ view of monetary policy that controls the movements of the financial markets.

The views of current President Jerome Powell and Lyle Brainard are very similar with regard to monetary policy on inflation and interest rates, and therefore monetary policy is expected to continue as it is without much change regardless of who will take over the presidency, Powell or Brainard, where the two differ in regulatory issues, which is Brainard’s position It is more stringent, but it does not concern us in anything as long as the two sides agree on the monetary policy of the Federal Reserve.

Since the trends are similar with regard to inflation and interest rates, the impact of the announcement of Paul M. Brainard for the presidency of the Federal Reserve will be limited on financial markets.