Staff of Reuters 2 minutes Reuters (Reuters) – In remarks prepared for delivery before a congressional hearing on Wednesday, Fed Chair Jerome Powell said the US employment market is “still a ways off” from the progress the Fed wants to see before lowering its support for the economy, while current high inflation will fall “in coming months.” The Federal Reserve Board building on Constitution Avenue in Washington, D.C., on March 27, 2019. FILE PHOTO: The Federal Reserve Board building on Constitution Avenue in Washington, D.C., on March 27, 2019. REUTERS/File Photo/Brendan McDermid Story: STOCKS: S&P 500 futures were recently up 0.4 percent, indicating a higher start on Wall Street. BONDS: The yield on a 10-year Treasury note fell to 1.3771 percent, while the yield on a 2-year Treasury note fell to 0.2349 percent. FOREX: The dollar index fell 0.4 percent today. “Powell’s testimony was on the dovish side, and the Treasury curve has steepened slightly in reaction,” says BEN JEFFERY, US RATES STRATEGIST, BMO CAPITAL MARKETS, NEW YORK (by email). HEAD OF GLOBAL POLICY RESEARCH, CORNERSTONE MACRO, WASHINGTON (by email) ROBERTO PERLI, HEAD OF GLOBAL POLICY RESEARCH, CORNERSTONE MACRO, WASHINGTON “The testimony exudes a determination to stick to one’s guns. This isn’t surprising, given that testimonies aren’t often used to communicate policy moves, and the FOMC hasn’t had a chance to address recent events, such as yesterday’s CPI reading. The press conference following the July meeting should reveal a lot more about the Fed’s future policy direction.” The Global Finance & Markets Breaking News team compiled this list./n
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