US Fed Chair Powell Tests Positive for COVID-19 Ahead of FOMC Meeting

[Asia Economy New York=Special Correspondent Joselgina] Jerome Powell, chairman of the U.S. Federal Reserve (Fed), tested positive for COVID-19 ahead of this year's first Federal Open Market Committee (FOMC) meeting.

[Image source=Reuters Yonhap News]

On the 18th (local time), the Fed announced that Chairman Powell tested positive for COVID-19 and is currently working from home in accordance with the Centers for Disease Control and Prevention (CDC) guidelines. Powell, who has completed his second vaccine dose and booster shot, is currently experiencing mild symptoms. No further details have been disclosed.

The Fed is preparing for the FOMC meeting scheduled from January 31 to February 1, where the U.S. benchmark interest rate will be decided. The CDC's recommended isolation period is five days, and it appears that Chairman Powell will be able to attend the FOMC meeting without issues. However, major foreign media outlets reported that if Powell's condition worsens beyond expectations, discussions via video conference, similar to those during the COVID-19 pandemic, may be conducted.

The 69-year-old Chairman Powell last appeared in an official capacity on January 10 during a panel discussion held at the Sveriges Riksbank (Sweden's central bank).

Market expectations suggest that the Fed may reduce the rate hike to 0.25 percentage points at this FOMC regular meeting. According to the Chicago Mercantile Exchange (CME) FedWatch, the federal funds futures market on that day reflected over a 93% probability of a baby step (a 0.25 percentage point increase in the benchmark interest rate) in February.