- Jerome Powell’s testimony in the US Congress will be a great event to move the market this week.
- New evidence is awaiting the course of the federal backup interest.
- The US dollar, stock markets and other asset classes can see great fluctuations with the words of the Federal Reserve Chair.
Jerome Powell, Chairman of the Federal Reserve of the United States (United States), will submit a semi -annual monetary policy report and a certificate before the Senate Banking Committee on Tuesday. The session will start, entitled “Semi -annual monetary policy report to Congress”, at 15:00 GMT and will have a full attention to all players in the financial market.
Jerome Powell is expected to treat the main meals for the Federal Reserve Monetary Reserves in the Federal Reserve, which was published last Friday. In this report, the Federal Reserve indicated that the financial conditions still show “somewhat restricted” and reiterated that policymakers would gain data when making a decision on future policy movements.
In a long question and answers session, American actors are expected to ask Powell about the interest rate course, inflation developments, and economic expectations. They are also likely to inquire about how US President Donald Trump’s policies affect prices, growth prospects and monetary policy to move forward.
The Fedwatch Group CME explains that the markets are at a possibility of less than 10 % that the Federal Reserve will reduce the policy price by 25 basis points (BPS) in March after the reaffirmation of the recent employment report in the labor market.
In January, non -agricultural salaries (NFP) rose 143,000. Although this reading was less than the market expectations of 170,000, the American Labor Statistics Office (BLS) announced the upscale reviews of the previous NFP editions. “The change in the total recruitment of non -agricultural salaries for November was 49,000, from +212,000 to +261,000, and the change for December is 51,000, from +256,000 to +307,000 combined above 100,000 than what I mentioned Previously, “I noticed BLS in its press statement.
The market situation indicates that the US dollar (USD) does not remain a lot of space on the upper side even if Powell confirmed that he will keep this policy unchanged in March. On the other hand, the US dollar can be subjected to the pressure pressure if Powell adopts an optimistic tone about inflation expectations and leaves the door open to reduce the rate of the next policy meeting.
About Jerome Powell (via Federralreservice.gov)
“Jerome H. Powell took office as head of the Conservative Council in the Federal Reserve System on February 5, 2018, for a period Federalism, the main monetary policy -making body.
