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Fed Chair Powell heads to Capitol Hill — What to know in markets Wednesday – Yahoo Finance


<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Wednesday is gearing up to be a big day for the Federal Reserve. First,&nbsp;Fed Chairman Jerome Powell heads to Capitol Hill&nbsp;to kick off two days of testimony in front of Congress. He will be delivering his semi-annual Monetary Policy Report. Then in the afternoon, the Fed will also release its June meeting minutes. Investors will be paying close attention to these two potential market-moving events.” data-reactid=”15″>Wednesday is gearing up to be a big day for the Federal Reserve. First, Fed Chairman Jerome Powell heads to Capitol Hill to kick off two days of testimony in front of Congress. He will be delivering his semi-annual Monetary Policy Report. Then in the afternoon, the Fed will also release its June meeting minutes. Investors will be paying close attention to these two potential market-moving events.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="[Read more: Powell may push back on the possibility of rate cuts in testimony this week ]” data-reactid=”16″>[Read more: Powell may push back on 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 a&nbsp;blowout June’s job report&nbsp;that was released on Friday. The U.S. labor market continues to remain the bright spot in the economy, even as other recent economic data points to a deceleration. Stocks sank following the jobs report, as investors worried that the stronger-than-expected data would dampen the chances of a rate cut at the Fed’s July meeting. Nevertheless, the markets are still pricing in a 100% chance of a 25 basis point cut in July. Several economists have noted that the recent jobs report illustrated that the data was not weak enough for the Fed to cut rates at this month’s meeting.” data-reactid=”17″>Powell’s testimony comes on the heels of a blowout June’s job report that was released on Friday. The U.S. labor market continues to remain the bright spot in the economy, even as other recent economic data points to a deceleration. Stocks sank following the jobs report, as investors worried that the stronger-than-expected data would dampen the chances of a rate cut at the Fed’s July meeting. Nevertheless, the markets are still pricing in a 100% chance of a 25 basis point cut in July. Several economists have noted that the recent jobs report illustrated that the data was not weak enough for the Fed to cut rates at this month’s meeting.

“The recent better-than-expected economic data and the easing of trade related uncertainties following the G-20 give Powell the chance to push back against markets pricing in a July cut. We think he takes this opportunity to do just that, while continuing to note that uncertainties are elevated and global crosscurrents remain,” Bank of America Merrill Lynch predicted in a note Friday.

Now, many are wondering what the central bank’s future monetary policy path will look like, and Powell could provide some clues during his testimony. His language about the current state of the economy, as well as risks and “crosscurrents” will play a crucial role.

In addition to questions about the economy, Powell will likely be grilled on political pressure, as President Donald Trump continues to relentlessly attack the Fed.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Meanwhile on the corporate earnings side, big-box retailer Bed Bath &amp; Beyond (BBBY) will release quarterly results after the market close.” data-reactid=”21″>Meanwhile on the corporate earnings side, big-box retailer Bed Bath & Beyond (BBBY) will release quarterly results after the market close.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="” data-reactid=”22″>

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

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="More from Heidi:” data-reactid=”27″>More from Heidi:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Jobs report smashes expectations” data-reactid=”28″>Jobs report smashes expectations

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Job cuts during the first half of the year were the highest since 2009: Challenger” data-reactid=”29″>Job cuts during the first half of the year were the highest since 2009: Challenger

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="U.S. private sector employment grows at disappointingly slow pace” data-reactid=”30″>U.S. private sector employment grows at disappointingly slow pace

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="McDonald’s Japan is one of the most popular places on Facebook” data-reactid=”31″>McDonald’s Japan is one of the most popular places on Facebook

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Tyson on alt-meat: We’re going in big” data-reactid=”32″>Tyson on alt-meat: We’re going in big

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