After months of debate, President Biden chose to take the bipartisan route and nominate Jerome Powell to serve a second four-year term as Federal Reserve Chairman. The announcement provides continuity as the Fed navigates decades-high inflation and a reduction of its monthly bond-buying program in pursuit of more normalized monetary policy. The consensus runner-up, Lael Brainard, was nominated to serve as the vice chair. In the coming weeks, President Biden will have another opportunity to make his mark on the seven-member board of governors with three additional appointments. In his speech on Monday morning, he pledged to “bring new perspectives and new voices” to the Fed.

Holiday Shopping

With trillions of dollars in excess savings and net worth at all-time highs, the U.S. consumer remains in a healthy position and the engine that powers the economy. Last week, October retail sales data was released with better-than-expected numbers, supporting our belief in the strength of the consumer. Specifically, discretionary sales, such as sporting goods and electronic appliances, were notable highlights and a sign the holiday shopping season has already begun.

Source: Federal Reserve

The day after Thanksgiving, known as Black Friday, became a nationally recognized phrase back in the 1980s as it was said to be the day retailers finally earned a profit for the year as shoppers took advantage of early store openings and large discounts. While this year may have fewer discounts due to lower inventories and high demand, the National Retail Federation (NRF) estimates nearly 2 million more people will shop from Thanksgiving Day through Cyber Monday this year than they did in 2020. The NRF also forecasts holiday sales to be around $845 billion, exceeding last year’s sales by roughly 9%.

Sources: U.S. Census, National Retail Federation

A Time to Give Thanks

As we reflect during the holidays, we would be remiss if we did not thank you, our clients, for your trust. And, while it has been nearly two years since the start of the pandemic, we are grateful for the resilience of our nation and the financial markets. We hope you have a wonderful and safe Thanksgiving weekend.

Takeaways for the Week:

Powell’s renomination removes one uncertainty from the market
Record-setting holiday sales are expected this year despite supply disruptions

Source:

Shoppers statistic, https://nrf.com/media-center/press-releases/thanksgiving-weekend-see-more-holiday-shoppers-last-year-and-consumers.

Disclosures