Powell "dovish testimony … cementing rate cut expectations beginning 31 July"

Earlier comments from Westpac following Fed Chair Powell testimony to Congress Wednesday.

This in summary:

• Fed Chair Powell delivered a dovish testimony
• cementing rate cut expectations beginning 31 July
• said that while their baseline for solid growth is still intact, uncertainties including trade, the US debt ceiling and Brexit have increased
• also cited slowing momentum in the global economy and that incoming data since their June meeting suggest the outlook has dimmed
• during the Q&A Powell said that the (NFP) report did not shift their outlook and reiterated that the data since June continued to disappoint.
• said that low inflation might prove more persistent, a change of tack from several months ago when he said low inflation was likely transitory