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Fed Chair Jerome Powell Expresses Optimism on Current US Economy

 

Fed Chair Jerome Powell sticks to the script in testimony before Congress, saying that current monetary policy remains appropriate. In his testimony on Tuesday, Powell said that the Fed continues to monitor the economic fallout from China’s coronarivus. Though it remains too soon to estimate the true economic effect of the outbreak, Powell assured Congress that current policy rates remained appropriate to sustain growth in the economy and labor market. Powell added that “the US economy in a very good place” and that it’s “performing well.” Powell will continue his testimony before the Senate Banking Committee later today. Risk assets and rates both rose yesterday- the slowdown in new coronavirus cases the apparent catalyst. This morning, the 10-year yield is higher once again- climbing 2 basis points to 1.62% while equity futures point to a positive open.

 

 

Senator Bernie Sanders wins New Hampshire Primary. Sanders narrowly took the win with 25.7% of the vote, closely followed by Pete Buttigieg with 24.4% and Amy Klobuchar with 19.7%. Andrew Yang and Michael Bennet ended their presidential bids. The nomination race now moves on to Nevada and South Carolina before turning to Super Tuesday. Super Tuesday, which occurs on March 3rd, allocates a full 35% of the total delegates up for grabs in the Democratic nomination race.

 

 

Day ahead. Philadelphia Fed President Patrick Harker and San Francisco Fed President Mary Daly will comment on the economic outlook. The Atlanta Fed business expectations report will be released this morning. Treasury Secretary Steven Mnuchin will speak to the Senate Finance Committee on the White House’s FY2021 budget shortly. US federal budget numbers for January will be released this afternoon. OPEC will also publish its monthly market review.

 

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