Powell’s testimony is very important in interpreting how the 🇺🇸 market will be in the next 1-2 weeks, so 🐯🐯🐯 let’s do a detailed analysis together by going through the important parts of his testimony in detail🕵🏻♀️🕵🏻♂️ Instead of me just telling you my Point-Of-View (POV) which may not be accurate, I have extracted parts of Powell’s testimony word-for-word so that you can form your POV & compare it with mine😉 How Did Powell Start❓ “My colleagues and I are acutely aware that high inflation is causing significant hardship, and we are strongly committed to returning inflation to our 2 percent goal. Over the past year, we have taken forceful actions to tighten the stance of monetary policy. We have covered a lot of ground, and the full effects of our tightening so far are yet to be felt.
How to Interpret Powell's Testimony?
Federal Reserve Chairman Jerome Powell is scheduled to testify before Congress on 7th and 8th March. Powell on Tuesday cautioned that interest rates are likely to head higher than central bank policymakers had expected. The stock market plunged after his speech. Some investors argue that the market is over-reacting. --------- [Topic] How do you interpret Powell's testimony? How do you expect Powell's testimony tonight? How will the testimony affect rate hike expectations?