Fed Chair Powell Testifies Before Congress

February 25, 2019

Fed Chair Powell Testifies Before Congress  Photo

Last week’s Federal Reserve (Fed) minutes and commentary from a variety of Fed presidents confirmed that the central bank will be taking a more cautious approach to monetary policy and increasing rates going forward. Given the Fed’s positioning, I don’t expect to see any increase in interest rates until very late in 2019, if at all. The more dovish stance of the Fed should continue to support economic growth and risk markets. 

Over the weekend, the potential for more tariffs on Chinese goods was pushed back from an initial deadline of March 1 as President Trump cited “substantial” progress in trade talks with China. I expect more positive trade news in the weeks ahead. 

This week, Fed Chair Powell will also testify before both the House and Senate on monetary policy and the state of the economy in his semiannual meeting. Additionally, the summit between U.S. and North Korean leaders will make many headlines.

Tags: Federal Reserve | Federal Reserve chair | Congress | trade

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