Following Powell's testimony, traders are pricing in a slightly higher than 70% chance of the Fed's first rate cut in September.

TechFlow reported that Powell's remarks indicated that the FOMC is unlikely to cut interest rates when it meets at the end of this month. After Powell's testimony was released, U.S. Treasury yields fluctuated but rose during the day, and the S&P 500 maintained its gains. Traders expect the Fed to have a slightly higher than 70% chance of its first rate cut in September and expect two rate cuts of 25 basis points each in 2024.