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Powell Testifies Again Today


S&P 500 and NASDAQ futures hit new record highs yesterday. Prices are higher today and are closing in on historical highs.

Yesterday Federal Reserve Chair Jerome Powell delivered his semiannual testimony before the House Financial Services Committee.

Jerome Powell reiterated the central bank’s cautious approach on monetary policy. Powell said the Fed needs more evidence that inflation is moving sustainably toward its 2.0% target before lowering interest rates. However, he warned that maintaining a restrictive policy for too long could weaken economic activity and employment.

Fed Chair Powell will testify before the Senate Banking Committee today at 9:00 central time. His testimony today will be essentially the same as what he delivered to the House Financial Services Committee yesterday.


Federal Reserve Building


The 9:00 May wholesale inventories report is expected to show a 0.6% increase.

The longer term fundamentals remain supportive to stock index futures.



Futures are higher, especially at the long end of the yield curve.

In addition to Federal Reserve Chair Powell, other Federal Reserve speakers today are Austan Goolsbee and Michelle Bowman at 1:30, and Lisa Cook at 6:30 PM.

The U.S. Treasury will auction 10-year notes today.

Financial futures markets are suggesting there will be two 25 basis point rate cuts in 2024, despite many Federal Reserve officials predicting only one fed funds rate reduction this year.

Financial futures markets are predicting there is a 77% probability that the Federal Open Market Committee will lower its fed funds rate by 25 basis points at its September 18 meeting.



The U.S. dollar index is lower.

Traders believe the European Central Bank will lower key interest rates once or twice this year, after a recent report showed preliminary figures for the annual inflation rate in the euro area eased in June to 2.5%.

The Japanese yen depreciated to around 161.5 per U.S. dollar, which is close to the 38-year low made last week.


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Futures and options trading involve significant risk of loss and may not be suitable for everyone.  Therefore, carefully consider whether such trading is suitable for you in light of your financial condition.  The information and comments contained herein is provided by ADMIS and in no way should be construed to be information provided by ADM.  The author of this report did not have a financial interest in any of the contracts discussed in this report at the time the report was prepared.  The information provided is designed to assist in your analysis and evaluation of the futures and options markets.  However, any decisions you may make to buy, sell or hold a futures or options position on such research are entirely your own and not in any way deemed to be endorsed by or attributed to ADMIS. Copyright ADM Investor Services, Inc.

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