Modest changes as Powell prepared remarks are digested

Fed’s Powell said decisions are made meeting by meeting. He sees solid increases in consumer spending, moderate growth in capital spending, and a pickup in residential investment. He characterizes the labor market as strong but not overheated. He says that more good data would strengthen their confidence. He also said that elevated inflation is not the only risk we face – setting the case for slower growth leading to a recession (I guess). Nevertheless, he cites the risk of acting too early.

There is a lot of two-way bias but the door is open for September

Looking at yields, they are marginally higher but not a lot.

Dow Industrial Average average is still down by -0.36%. The S&P is up 0.17% and the NASDAQ is coming off its highs but is still up 66 points or 0.36% (it was up close to 100 points). The Russell 2000 is down -0.23% as it reacts to higher yields and the potential for slower growth.

This article was written by Greg Michalowski at www.forexlive.com.