Democratic control of the Senate would give lawmakers greater authority to challenge President Donald Trump’s nominees to the Federal Reserve, according to Bitunix analysts. The Senate Banking Committee, which could be led by Senator Elizabeth Warren, would also increase scrutiny of Fed Chair Kevin Warsh and the transparency of monetary policy decisions. Resilient labor-market data could nevertheless make rate cuts less likely: private employers added 86,000 jobs in October according to ADP, while job openings rose by 333,000 in September. Economists expect Friday’s nonfarm payrolls report to show 65,000 new jobs and an unemployment rate of 4.2%, with a sharp deterioration potentially strengthening expectations of monetary easing. Bitunix also cited the Reserve Bank of Australia’s rate increase to 4.85% as evidence that inflation concerns remain elevated, while Bitcoin and other risk assets remain sensitive to employment and inflation data.
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