Powell, President of the Fed, goes to Capitol Hill – What you need to know about markets Wednesday

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<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Wednesday is preparing to be a big day for the Federal Reserve First, & nbsp;Fed President Jerome Powell visits Capitol Hill& nbsp; launch two days of testimony before the Congress. He will present his semi-annual report on monetary policy. In the afternoon, the Fed will also release its minutes of the June meeting. Investors will pay particular attention to these two events that may change the markets. "Data-reactid =" 15 "> Wednesday prepares for the big day of the Federal Reserve First, Fed President Jerome Powell visits Capitol Hill After two days of testimony before Congress he will present its semi-annual report on monetary policy, then in the afternoon, the Fed will also publish the minutes of its June meeting, which will pay particular attention to investors.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "[Readmore:[Readmore:[Lirelasuite:[Readmore:Powell could postpone the possibility of rate cuts in testimony this week ]"data-reactid =" 16 ">[Readmore:[Readmore:[Lirelasuite:[Readmore:Powell could postpone the possibility of rate cuts in testimony this week ]

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Powell's testimony comes on the heels of & nbsp;June's employment report& nbsp; which was released on Friday. The US labor market remains the positive point of the economy, while other recent economic data suggest a slowdown. Stocks dipped following the jobs report as investors feared that stronger data than expected would reduce the chances of rate cuts at the July Fed meeting. Nevertheless, markets still expect a 100% probability of a 25 basis point cut in July. Several economists have noted that the recent employment report indicated that the data was not low enough for the Fed to cut rates at this month's meeting. The US labor market remains the backbone of the economy, although other recent economic data point to a slowdown. Stocks plunged as a result of the jobs report, investors worried that stronger than expected data will dampen the chances of a rate cut at the Fed's July meeting. Nevertheless, the markets still expect a 100% probability of a 25 basis point cut in July. Several economists have noted that the recent employment report showed that the data was not weak enough. for the Fed to cut rates at this month's meeting.

"Better-than-expected recent economic data and the easing of trade-related uncertainties that followed the G-20 are giving Powell an opportunity to lower market prices in the July downturn." We believe that he is taking this opportunity to do so, while continuing to note that uncertainties are high and that common currents are intersecting, "Bank of America Merrill Lynch predicts in a note on Friday.

Many people are now wondering what the central bank's future monetary policy will look like, and Powell may give some clues in his testimony. His talk on the current state of the economy, as well as on risks and "cross currents", will play a crucial role.

In addition to economic issues, Powell is likely to be under political pressure as President Donald Trump continues to tackle the Fed relentlessly.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Meanwhile on the corporate profits side, the big boxes detailing Bed Bath & Beyond (BBBY) will publish quarterly results after the close of the market. "data-reactid =" 21 "> At the same time, on the corporate side, Bed Bath & Beyond (BBBY) will publish its quarterly results after the market closes.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Heidi Chung is a Yahoo Finance journalist. Follow her on Twitter: @heidi_chung."data-reactid =" 23 ">Heidi Chung is a Yahoo Finance journalist. Follow her on Twitter: @heidi_chung.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit."data-reactid =" 24 ">Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

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