Prepared text from Fed Powell

Prepared text from Fed Powell
  • Full text of testimony from Fed Chair Powell
  • inflation is likely to remain elevated in coming months
  • expects inflation to ease
  • household and business balance sheets are quite strong
  • core financial institutions are resilient
  • Strong job gains expected to continue
  • household spending is rising at a rapid pace
  • business investment is solid
  • reaching the standard of "substantial further progress" this is still a ways off
  • expectations are that progress will continue
  • the Fed will provide advance notice before announcing a decision to make changes in Fed policy.

The Fed chair is not in a hurry to get to the taper despite the higher inflation. He will no doubt be grilled on the recent inflation trends today. Earlier today ex treasury Secretary Mnuchin said the Fed should immediately term asset purchases.

In the Chairs favor is that the 10 year yield is trading at 1.369% which is still well below the year high at 1.774% but up from the low last week at 1.25%. That low yield stalled at the 200 day MA. Yields are lower today after the run higher to 1.43% yesterday.

The 10 year yield