Jerome Powell will remain a head of the Fed for another four years

Treasury yields jumped on news of Powell’s reappointment, suggesting that many investors were betting on Brainard leaning more “dovish”, which would likely lead to a longer-term approach to monetary policy.

Rising government bond yields contributed to the sharp drop in gold and silver prices, as these instruments have an inverse correlation to the Treasury yield indicator. Fundamentally, the reduction of the QE program contributes to the decline in prices of precious metals.

Bank of America Corp. strategists are bearish for next year and urged investors to focus on cash since faster inflation and higher interest rates change the trajectory of global asset prices. The dollar index continues to rise as investors shift funds into dollars amid volatile markets. Many analysts are beginning to believe that the Democrats will “drop” the stock market.

Oil prices are falling in anticipation of the US decision to use oil from the strategic reserve. One OPEC+ delegate said that the global oil-producing alliance may adjust its production plans if consumer countries release their reserves to increase supply on the market to push prices lower. The United States is preparing to sell oil from its inventories within the next 24 hours and that this move will be done in cooperation with other consumer countries (Japan, India).

Asian stock indexes traded multidirectional on Tuesday, watching a decline on Wall Street, as traders increasingly believe a rate hike in the US in 2022 after President Joe Biden re-elected Federal Reserve Chairman Jerome Powell for a second term. China’s benchmark CSI 300 index is on the opening level, while Hong Kong’s Hang Seng index decreased by 1.05%. The Australian ASX 200 was better than the market and increased by 0.78% on the back of gains in mining and energy stocks. Japanese markets are closed due to the bank holiday. Singapore’s inflation rate rose to 3.2% in October, the highest one since 2013.