Day 2 of Fed Chair Powell's testimony: What to expect

Federal Reserve Chair Jerome Powell is in the spotlight again on Capitol Hill as he testifies before the House Financial Services Committee. Yahoo Finance Senior Reporter Jennifer Schonberger gives an overview Powell's first day of remarks and what investors can expect from today's testimony.

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This post was written by Melanie Riehl

Video Transcript

Fed chair Jay Powell is in the spotlight again after testifying before the Senate Banking Committee for his annual se his semi annual monetary policy report to Congress on Tuesday.

Powell is set to return to Congress this morning, but this time he'll address the House Financial Services Committee.

Yahoo Finance senior reporter Jennifer Schomer has more on this story, Jen, what are you tracking?

Good morning, Brad.

That's exactly right fed chair Jay Powell said to testify for the second day of a semi annual testimony before Congress where he indicated Tuesday that the FED is inching closer to feeling comfortable about interest rate cuts.

Chair Powell told Senate lawmakers that he was encouraged by evidence of core and that more quote good data would help get the fed to where it wants to be.

He also said he viewed the job market as slowing indicating the central bank is paying attention to a weakening in the job market along with inflation.

Whereas previously, the fed was more focused on bringing down inflation.

Take a listen, the most recent labor market data do send to your point a pretty clear signal that labor market conditions have cooled considerably compared to where they were two years ago.

This is no longer an overheated economy.

Powell will face a second day of questions this time before the House Financial Services Committee where he is expected again to be hit by Republicans on proposed capital requirements known as basil three.

While Democrats are again expected to pressure Powell to lower rates.

Powell expected to reiterate much of the same message from yesterday about encouraging inflation data and a cooling in the job market.

When asked on Tuesday from Senator Kennedy, when the fed could begin lowering rates, he said he was not going to give any signal on the timing of future actions.

Investors expecting pricing in a 70% chance of the first rate cut come September.

This hearing gets underway at 10 a.m. on Capitol Hill here in Washington.

Back to you.

All right, John, thanks so much.