Today, investors are closely watching Federal Reserve Chair Jerome Powell's appearance before the U.S. House Financial Services Committee. The focus is on the Federal Reserve's monetary policy outlook, influencing global markets. The event is expected to provide key insights into the central bank's future actions.
The Dow Jones Industrial Average futures rose nearly 0.7%, approaching 42,870. S&P 500 futures added 47 points, reaching approximately 6,072. These gains are partly due to a ceasefire between Israel and Iran, reducing geopolitical tensions. Dovish remarks from Federal Reserve officials also contributed to the positive market sentiment.
Federal Reserve officials, including Vice Chair Michelle Bowman and Governor Christopher Waller, have supported potential interest rate cuts. Governor Waller suggested rate reductions as early as July. The U.S. Dollar Index (DXY) fell to near 98.00, and oil prices declined, potentially easing inflationary pressures. The Federal Reserve has maintained its key interest rate at approximately 4.3%.
The Federal Reserve anticipates inflation to rise to 3% by the year's end. Policymakers anticipate two rate cuts later in the year. Investors await Powell's appearance for further guidance on the central bank's approach. The information is sourced from Reuters, CNBC, and the Financial Times.