NEW YORK: Should Democratic challenger Joe Biden prevail, as polls suggest, some on Wall Street are looking ahead to his cabinet picks to gauge whether he will govern as a business-friendly moderate or promote progressive legislation that could weigh on sectors such as financials and oil but bolster clean energy.
"A cabinet that is not dominated by the progressive end of the Democratic spectrum would be more favorably viewed by the market" and dampen fears of increasing regulations under a Biden Administration, said Liz Ann Sonders, chief investment strategist at Charles Schwab. Fed Governor Lael Brainard and former Treasury deputy secretary Sarah Bloom Raskin are also seen among the most likely https://www.reuters.com/article/us-usa-election-biden/months-before-election-liberal-groups-press-biden-on-picks-for-economic-posts-idUSKBN2300HK selections for the Treasury post. Another possible pick is Rhode Island Governor Gina Raimondo, according to the Washington Post.
While Warren and Brainard are qualified,"the foundation of Warren's career has been attacking the banking industry," Mike O’Rourke, chief market strategist at JonesTrading, said in a September research note, and that would"likely rattle investor confidence."