Fed Chair Jerome Powell Presents Economic Report to Senate
🕓 Time: 14:00 UTC
📈 Jerome Powell, Chair of the Federal Reserve, will present his biannual economic report at Capitol Hill. Despite potential strong questioning from lawmakers, Powell is expected to remain reserved on details about rate cuts.
📢 Key Points:
🟠Inflation and Elections: Powell will defend the Fed's stance on inflation, emphasizing reliance on economic data.
🟠Rate Cuts: Powell might hint at potential easing of monetary policy later this year but is unlikely to provide specifics. The term "soon" will be crucial.
🟠Labor Market: The Fed is balancing the risk of slowing job growth against potential inflation from premature rate cuts. Wage growth is strong, but the labor market is stabilizing with unemployment at 4.1%.
🟠Fed Meeting Minutes: Inflation has modestly decreased but remains above target. Powell highlights the need for confidence before cutting rates.
🟠Rate Cut Expectations: Progress on inflation and labor market cooling may lead to a rate cut. If June's PCE price index remains stable, a 25 basis point cut could occur in September.
