Fed Chair Powell: Economy Strong, Rate Cuts Not Imminent
Market Reaction:
* Stocks: S&P 500 down 0.15%
* Bonds: 10-year Treasury yield at 4.533%
* Forex: Dollar index down 0.28%
Key Points:
* Fed Chair Jerome Powell indicates no rush to cut short-term interest rates.
* Economy remains "strong overall" with low unemployment and above-target inflation.
* Powell reiterates concerns about removing policy restraint too quickly.
* Senate testimony marks the beginning of hearings on the impact of Trump administration policies on the economy.
* Powell declines to comment on tariffs but acknowledges trade issues.
Analyst Commentary:
* Helen Given, Monex USA: Powell's remarks perceived as cautious, urging restraint in markets.
* Bradley Saunders, Capital Economics: Trump's erratic policymaking likely influencing Fed policymakers' considerations.