If Biden picks Brainard over Powell for Fed chief, expect an immediate market impact

If Lael Brainard is named Federal Reserve chairman, the first move by financial markets may be to price in an even more dovish central bank.

That means the Fed would be expected to take longer to raise interest rates or tighten policy than under Fed Chairman Jerome Powell. Currently, traders are expecting the Fed to begin raising rates in the second half of next year, once it winds down its bond buying program.

Until just recently, Powell was expected to be renominated to the chairmanship, but President Joe Biden has now interviewed both Powell and...