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Powell will begin speaking in Congress at 10 am ET but the Fed pre-released his opening statement.

  • The US economy is strong overall
  • Policy is well-positioned to deal with risks and uncertainties
  • Can maintain policy for longer if economy remains strong and inflation does not move towards 2%
  • Can ease if labor market unexpectedly weakens or inflation falls more quickly than expected

Ahead of his speech, the market was pricing in 41 bps in easing this year and I don't see anything here that would move it. These comments echo what he said after the Fed decision.

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