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Investors will review his remarks to verify that the Fed will reduce rates at its meeting this month and, if so, by how much. A solid employment report for June weakened arguments for a major change.
Legislators can also put pressure on Powell for the Fed's independence in the light of repeated criticism from President Donald Trump.
Trump recently said the central bank was acting like a "stubborn child" for refusing to follow an easy money policy and tweeted that the Fed "does not know what it's doing".
The Central Banker will appear before the Financial Services Committee of the House at 10:00 am ET. The Fed also publishes a report of its June meeting at 2 pm AND.
2. Pound under pressure: The British pound is the lowest level in two years compared to the US dollar, while the race for replacement of Prime Minister Theresa May raises further concern about the Brexit.
Boris Johnson, the favorite to succeed May, warned that he could pull the UK out of the European Union on Oct. 31 without an agreement protecting the trade.
Bank of America analysts, Merrill Lynch, said in a note on Wednesday that the odds of leaving without an agreement had risen – although this is still not their basic expectation.
"We believe that persistent uncertainty is the most appropriate forecast," they said.
The UK economy grew 0.3% in May, according to data released Wednesday. This eases the pain of a 0.4% drop in April, but does not change the image of a weak economy overall and possible negative growth in the second quarter.
3. Pending markets: Markets lack direction before Powell's remarks.
Wednesday – US oil stocks; Powered minutes; Bath & Beyond Bed (BBBY) earnings; Powell testifies in the House
Thursday – US inflation rate; China's trade balance; Delta (DAL) earnings; Powell testifies in the Senate
Friday – American producer prices
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