Fed’s Powell will report to Congress

Fed’s Powell will report to Congress

Federal Reserve Chair Jerome Powell on June 16 at 17:00 MT time begins the first of two days of testimony. It is a really important event for traders as the prospect for the economic recovery will volatile markets.

What is the Powells testimony?

It is a report to Congress. His speech consists of 2 parts. The first one is the prepared statement. The second one is a question and answer session. Traders are interested more in the last one as Powell doesnt know questions before and he may unveil some unscripted moments that add fresh market movements. This time the main focus will be on how fast the Fed thinks the USA will recover and what measures the Fed will offer to support economy.

What to expect?

Analysts widely anticipate the upcoming Feds message will echo the pessimistic outlook Jerome Powell gave last week. After that negative prospect the market sentiment hugely deteriorated. It may happen again today. Todays meeting even becomes a political issue. Democrats are pushing for further fiscal stimulus, while Republicans are against it as the US May jobs report was encouraging. Jerome Powell doesnt want to enter the political fight. Thats why its more intriguing today to watch which side will be right.

What does it mean for a trader?

If the tone of Powells speech is dire and prospects are grim, safe-haven assets such as USD and gold will gain.

Otherwise, if Jerome Powell is optimistic (whats less possible), stocks and riskier currencies will rise.

Thank you for rating.
REPLY A COMMENT Cancel Reply
Please enter your name!
Please enter a correct email address!
Please enter your comment!
The g-recaptcha field is required!

Leave A Comment

Please enter your name!
Please enter a correct email address!
Please enter your comment!
The g-recaptcha field is required!