“I think he’s been a stick-to-the-path kind of guy,” said Robert Brusca, chief economist at FAO Economics.
Powell will testify to the Senate Banking Committee at 10 a.m. on Tuesday, followed by a second day with the House Financial Services panel on Wednesday.
After raising rates in March and June, the Fed has penciled in two more interest-rate hikes this year. Markets expect the Fed to move in September and December
Julia Coronado, founder of MacroPolicy Perspectives, says Powell will be on safe territory with members of Congress about the rate-hike path.
Lawmakers “won’t be clamoring for a faster pace of rate hikes,” she said.
There may be a little concern that the Fed is moving too aggressively.
“There will be a concern the Fed should be careful they don’t go too fast,” Coronado said.
The Fed’s formal monetary policy report, released late last week, was optimistic that more prime-age men may join the workforce.
“He’s not real nervous about inflation, both sides of the aisle will be pleased with that,” she said.
Reference: Market Watch
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