Futures turn positive after Fed chief Powell's remarks

A currency trader stands by the screens showing the foreign exchange rates at the foreign exchange dealing room in Seoul South Korea Monday

A currency trader stands by the screens showing the foreign exchange rates at the foreign exchange dealing room in Seoul South Korea Monday

Concerns about trade policy and a weak global economy "continue to weigh on the U.S. economic outlook" and the Federal Reserve stands ready to "act as appropriate" to sustain a decade-long expansion, Fed Chairman Jerome Powell said on July 10 in remarks that could bolster expectations of an interest rate cut later this month. On Sunday, Mr. Trump asserted that if the Fed "knew what it was doing", it would cut rates.

"We don't have any basis, or any evidence, for calling this a hot labor market", Powell says during testimony before the House Financial Services Committee.

On the subject of the Libra cryptocurrency, Powell was cautious in his statements, but open with the congresswoman.

The Latest on Federal Reserve Chairman Jerome Powell's presentation of the Fed's semi-annual monetary report to Congress.

Indeed, CCN has it on good authority that Facebook was working on this project at least 12 months ago, having a meeting with the makers of Hedera HashGraph and ultimately integrating one of their ideas.

"Growth indicators from around the world have disappointed on net, raising concerns that weakness in the global economy will continue to affect the US economy", he continued.

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Powell said the Federal Reserve had recently convened a meeting to discuss Libra, but that inter-agency working groups like the Financial Security Oversight Council (FSOC) had not had a chance to meet on the topic yet.

At 9:53 a.m. ET, the Dow Jones Industrial Average was up 194.36 points, or 0.73%, at 26,977.85, the S&P 500 was up 21.95 points, or 0.74%, at 3,001.58 and the Nasdaq Composite was up 84.68 points, or 1.04%, at 8,226.40.

The Fed has kept its current benchmark overnight interest rate in a range of between 2.25% and 2.50% since December.

Bond prices rose sharply as traders anticipated that the Fed would take on a looser policy on interest rates. The implied rate had been around 2.16% just before the release of remarks.

USA stock index futures gained, turning positive for the day after Powell's remarks were released, while the U.S. dollar fell against a basket of other currencies. Trump's attacks have raised alarms that he is undermining the Fed's long-recognized independence from political pressure. Consumer spending and home sales look solid. On Friday, Trump derided the Fed as the "most hard problem" facing the U.S.

The pound's woes are purely sentiment-based with Brexit uncertainty still weighing and economic concerns likely to see the United Kingdom economy contract in Q2. That suggests around 30 basis points of easing from the most recent effective fed funds rate of 2.41%. President Donald Trump's trade wars have magnified uncertainties.

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