Global markets are closely following Federal Reserve Chair Jerome Powell’s appearance to Congress this week. Federal Reserve Chairman Jerome Powell will testify before the House Financial Services Committee on Wednesday and the Senate Banking Committee on Thursday in his semi-annual legislative testimony.
The testimony of Fed Chair Powell on the Federal Reserve’s Semi-Annual Monetary Policy Report will be delivered on Wednesday, March 6, 2024 10 AM at 2128 Rayburn House Office Building and on Thursday at 09:40 AM at Dirksen Senate Office Building 538.
The Full Employment and Balanced Growth Act of 1978—commonly referred to as the “Humphrey-Hawkins Act”—amended the Federal Reserve Act to require the Federal Reserve to present semi-annual reports to Congress. The statutorily required reports, which are the subjects of the hearings, are focused on domestic economic trends, the objectives of the Board of Governors and the Federal Open Market Committee (FOMC).
The Monetary Policy Reports include the statement on longer-fund goals and monetary policy strategy, recent economic and financial developments, monetary policy discussion, and a summary of FOMC member economic projections.
Investors will look for cues around the Fed’s fight against inflation, and when the central bank may begin cutting interest rates.
Fed is not in a hurry to cut rates. At least this is what the market has already sensed after the inflation story lately hitting a stumbling block as the Fed’s favored gauge – PCE – witnessed its greatest monthly increase in a year, Wall Street expects the central bank to be cautious in decreasing interest rates and cut interest rates three times this year, beginning in June.
This is consistent with recent comments from Chair Powell and projections from the Fed itself. On March 20, the Federal Open Market Committee will announce its most recent policy decision and a review of economic projections.