• The Jerome Powell certificate in the US Congress will be an event with the highest level this week.
• New tips on the Federal Reserve interest rate are expected.
• American dollar, stock market markets and other asset classes could see enormous swings with the words of the Fed chair.

Jerome Powell, chairman of the United States Federal Reserve (USA), will provide a six -month monetary policy report and testify on Tuesday before the Senate Banking Commission. The hearing, entitled “Semi -annual monetary policy report to Congress” will start at 15:00 GMT and bring full attention of all players on the financial market.

Jerome Powell is expected to take care of the main dishes for the semi -annual monetary policy report of the federal reserve, published last Friday. In this report, the Fed noted that the financial conditions still seem “somewhat restrictive” and repeated that decision -makers would weigh the data when making decisions about future movements of the principles.

During a long session of questions and answers, US representatives are expected to ask Powell about the path of interest rates, inflation development and economic perspectives. It is also very likely that US President’s policy Donald Trump can affect prices, growth prospects and monetary policy.

The CME Group Fedwatch tool shows that the market price in less than 10% likely that the FED will reduce the policy rate by 25 base points (BPS) in March after the latest employment report confirmed the strict conditions on the labor market.

In January, payrolls other than farm (NFP) increased by 143,000. Although this reading was below market expectations of 170,000, the American Bureau of Labor Statistics (BLS) announced corrections to previous NFP prints. “The change in total employment in the scope of non -farmed wages to November has been changed by 49,000, from +212,000 to +261 000, and the change in December was changed by 51,000, from +256,000 to +307,000. With these searches, employment in November and December in December is 100,000 higher than the previously reported “BLS recorded in a press release.

Market positioning suggests that the American dollar (USD) remained little space for the advantage, even if Powell confirms that it will keep the policy in March. On the other hand, USD may be under sales pressure in case Powell accepts an confident tone with the perspective of inflation and leaves the door open to reduce the rate at the next political meeting.

About Jerome Powell (via federalreserve.gov)

“Jerome H. Powell for the first time took the office as the chairman of the governors of the Federal Reserve System on February 5, 2018 for a four -year term. He was again appointed to the Office and sworn in for the second four -year term on May 23, 2022. Mr. Powell also serves as the chairman of the Federal Committee of the Open Market, the main political body of the system. Necessary date.