Powell continues his testimony on Capitol Hill

  • There is nothing in today's economy that is booming.
  • The US economy is a sustainable picture
  • Generally free and fair trade is a good thing
  • We're very committed to Fed's twin goals
  • Fed does its work on a nonpartisan basis and tries to be transparent in a nonpolitical way
  • Expansion is on a sustainable footing
  • US economy is a star economy, don't see recession
  • Don't see warning signals that appeared on other cycles
  • No reason to think chance of downturn is elevated
  • Day of reckoning for US debt levels may be a long way off
  • greater labor force participation could boost the economy
  • low-inflation shows no sign economy overheating
  • Fed thinks It is in the neighborhood of maximum employment
  • Passage of USMCA would remove uncertainty
  • Need a broad national commitment to fiscal sustainability
  • Idea that debt doesn't matter is wrong
  • Fed policies is supporting consumer spending
  • US economy is in a very strong position
  • US economic outlook is still positive
  • Fed will use tools aggressively if appropriate
  • US economy is in a very strong position
  • US economic outlook is still positive

The Fed chair has finished his testimony at the scheduled 12 PM ET and time.

Overall today, the US stocks moved lower through his testimony, the price of gold has moved higher (trading near highs at $1473.13 were up $9.50). The dollar has move lower and rates along the curve also declined (10 year is down 7.8 basis points at 1.808%).

I would not necessarily attribute the decline to comments from the Fed. The tick up in the initial jobless claims today, the concerns about US/China trade and perhaps the comfortable feeling from the Fed chair about the economy when traders seem to be a little more concerned, has driven the markets. Remember, the Fed was comfortable in December when the height rates by 25 basis points as well. They seem to be consistent with their comments that the US economy and monetary policy are both at a good place (when there are some serious risks as well).