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SAO PAULO, March 16 (Reuters) - Brazil's currency and stock market fell for the third straight day on Wednesday, as news of a cabinet reshuffle raised concerns of a sudden swing in fiscal and monetary policy for an economy mired in its worst recession in decades.
The Brazilian real slid as much as 2 percent while the benchmark Bovespa stock index lost 1 percent in early trading, accumulating a three-day slide of nearly 7 percent and 6 percent respectively.
As President Dilma Rousseff met with her political mentor, former President Luiz Inacio Lula da Silva, to discuss his possible return to the government, newspaper Valor Economico reported the head of the central bank could be on his way out.
Lula and his Workers' Party have publicly called for a shift away from austerity and toward more public spending to jumpstart an economy mired in its worst recession in decades.
The central bank's press office declined to comment on the Valor story. (Reporting by Brad Haynes; Editing by Meredith Mazzilli)