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ET (1500 GMT), with investors awaiting his comments on the Fed's steps aimed at bringing inflation towards its 2% target. Rising bond yields tend to weigh on equity valuations, particularly those of growth and technology stocks, as higher rates reduce the value of future cash flows. Traders see Fed fund rates peaking at 5.46% by September, from the current 4.67%. ET, Dow e-minis were up 12 points, or 0.04%, S&P 500 e-minis were up 5.5 points, or 0.14%, and Nasdaq 100 e-minis were up 29.25 points, or 0.24%. Reporting by Sruthi Shankar and Bansari Mayur Kamdar in Bengaluru Editing by Vinay DwivediOur Standards: The Thomson Reuters Trust Principles.

While ostensibly focused on monetary policy, the questions tend to range across issues, and the sessions this week - the first since Republicans took control of the House after midterm elections - may be particularly wide in scope. Powell's last monetary policy report to Congress was in June, early in what became the most aggressive cycle of Fed rate increases since the 1980s. Fed rate hikes "are designed to harm the labor market. Despite some high-profile layoff announcements, weekly new jobless claims have remained below 200,000 for seven consecutive weeks, comparable to pre-pandemic levels. That ongoing strength has posed perhaps the key question for Powell to answer: Whether the impact of monetary policy is just delayed and on the way, or whether the current economy needs even tighter monetary policy, with all the risks that entails.

☆ Jerome Powell to Testify to Congress on Outlook for Rates, Inflation
▼ + stars: | 2023-03-07 | by ( Nick Timiraos | ) www.wsj.com time to read: 1 min

Federal Reserve Chair Jerome Powell is likely to caution on Capitol Hill that strong economic activity this year could lead U.S. central bank officials to raise interest rates more than they expected to combat high inflation. Mr. Powell is set to testify for two days, starting Tuesday at 10 a.m. Eastern time before the Senate Banking Committee and continuing Wednesday before a House committee. They will be his last scheduled public remarks on interest-rate policy, and a final chance to shape market expectations, before the Fed’s next meeting, March 21-22. Officials begin their premeeting quiet period on Saturday.

☆ Top 10 things the Club is watching in the stock market Tuesday: Fed's Powell, Meta, obesity
▼ + stars: | 2023-03-07 | by ( Jeff Marks | ) www.cnbc.com time to read: +3 min

Meta Platforms ' (META) "year of efficiency" set to continue: Bloomberg is reporting job cuts in the thousands could happen as soon as this week. WW International (WW) is higher after announcing deal to acquire the anti-obesity-focused telehealth provider Sequence. (Jim Cramer's Charitable Trust is long META, LIN, CSCO, AMZN, LLY. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio.

☆ Premarket stocks: What to watch as Fed Chair Powell testifies before Congress
▼ + stars: | 2023-03-07 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +5 min

New York CNN —Federal Reserve Chair Jerome Powell is on the hot seat this week as he testifies before Congress. Powell will have some good news to report — when he last testified before Congress in June, the inflation rate was at 40-year-highs, nearing 9%. Investors will also be on edge — hawkish language or even an aggressive tone from Powell could lead to market volatility. Some Fed officials agree. Economists, business leaders, investors and even Fed officials aren’t really sure about what’s happening.

☆ Markets are pricing in higher odds of a bigger Fed rate hike this month as Powell delivers hawkish testimony and key bond yields top highest level since 2007
▼ + stars: | 2023-03-07 | by ( Carla Mozée | ) www.businessinsider.com time to read: +3 min

Fed funds futures pricing suggests 61.6% odds of a half-point increase, up from 31.4% on Monday. Getting inflation back to 2% "is likely to be bumpy," Fed Chair Jerome Powell told senators. There's a 61.6% probability the Fed will raise its benchmark rate by 50 basis points on March 22, according to the CME FedWatch tool tracking fed funds futures pricing. The slowdown followed four straight increases of 75 basis points. The probability for a move of 25 basis points were still larger, at 56.3%.

☆ Elizabeth Warren asks Fed Chair Powell to 'speak directly' to the people he's 'planning to get fired over the next year' by continuing to hike interest rates
▼ + stars: | 2023-03-07 | by ( Ayelet Sheffey | ) www.businessinsider.com time to read: +3 min

Fed Chair Jerome Powell testified before the Senate Banking Committee on Tuesday. Sen. Elizabeth Warren asked him how he will respond to Americans that could lose their jobs from interest rate hikes. While inflation is easing, Powell has indicated continued rate hikes will be necessary this year. "Will working people be better off if we just walk away from our jobs and inflation remains 5%-6%?" "We expect 2023 to be a year of significant decline in inflation," Powell said last month.

☆ Morning Bid: Powell's plan, China challenge
▼ + stars: | 2023-03-07 | by ( ) www.reuters.com time to read: +4 min

Powell's semi-annual testimony to the Senate Banking Committee is widely expected to condone the recent shift in market pricing toward more aggressive Fed rate hikes and a 'higher for longer' rate horizon. The Fed's accompanying report to Congress last week said there was clearly more work to do to curb inflation. As was the case after the last Fed meeting, Powell's unlikely to push back strongly against market re-pricing - not least ahead of the critical February employment report on Friday. Markets have scrambled to push up their bets on the likely peak Fed policy rate over recent weeks as U.S. jobs, retail and inflation soundings have run hotter than most expected. World stocks and Wall St futures were in a holding pattern for the most part ahead of the testimony.

☆ We may be seeing 6% or 7% interest rates by the middle of the year, says Milken's William Lee
▼ + stars: | 2023-03-07 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailWe may be seeing 6% or 7% interest rates by the middle of the year, says Milken's William LeeWilliam Lee, Milken institute chief economist, joins 'The Exchange' to discuss Fed Chair Powell's testimony before the Senate Banking Committee earlier today.

☆ Fed's Powell sees long-term damage if US debt ceiling not raised
▼ + stars: | 2023-03-07 | by ( Michael S. Derby | ) www.reuters.com time to read: +1 min

NEW YORK, March 7 (Reuters) - The United States risks long-term damage if Congress does not raise the national debt ceiling, Federal Reserve Chair Jerome Powell said on Tuesday. Republicans, who control the U.S. House of Representatives, want to withhold a debt limit increase until Democrats agree to deep spending cuts. Democrats say the debt limit should not be "held hostage" to Republican tactics over federal spending. A debt ceiling showdown in 2011 roiled markets and led to a downgrade by credit ratings agency Standard & Poor's. Reporting by Michael S. Derby; Additional reporting by Lindsay Dunsmuir; Editing by and Paul SimaoOur Standards: The Thomson Reuters Trust Principles.

☆ Oil steady as market juggles supply and demand fears
▼ + stars: | 2023-03-07 | by ( Rowena Edwards | ) www.reuters.com time to read: +2 min

Brent crude futures fell 22 cents, or 0.26%, to $85.96 a barrel by 1043 GMT. Bearish sentiment surrounded a contraction in China's exports and imports in January and February, including crude imports. The decline came despite a lifting of COVID-19 restrictions, pointing to weakness in foreign demand. "The key unknown for 2023 will be the disruption to Russia's oil and refined product exports," Commonwealth Bank of Australia analyst Vivek Dhar said in a note. The market will also look for direction from U.S. Federal Reserve Chair Jerome Powell's testimony before the Senate Banking Committee at 1500 GMT on Tuesday.

☆ What’s changed since Powell last headed to Capitol Hill
▼ + stars: | 2023-03-07 | by ( Alicia Wallace | ) edition.cnn.com time to read: +2 min

It’s his first appearance before the committee since June last year, when inflation was on its way to 9%. Inflation has slowed in recent months, measuring 6.4% in January after hitting a 40-year high of 9.1% in June. Faced with a strong labor market, uncertain geopolitical developments and surging inflation, Powell told members of Congress then that he’d likely propose a quarter-point rate hike at the central bank’s forthcoming meeting. It’s now March 2023, and the central bank is faced with an “extraordinarily strong” labor market, ongoing geopolitical uncertainty and stubborn inflation. One month ago, the probability for a half-point increase was 3.3%, according to the CME FedWatch Tool.

☆ 2.6 million Americans could lose their jobs if the GOP cuts spending in a debt ceiling deal, a new report says
▼ + stars: | 2023-03-07 | by ( Ayelet Sheffey | Juliana Kaplan | ) www.businessinsider.com time to read: +5 min

A Moody's analysis said GOP spending cuts in a debt ceiling increase could cost Americans 2.6 million jobs. Negotiations to raise the debt ceiling aren't making much progress, with a default potentially as soon as 4 months away. "In fact, the economic impact would be so great, that it would result in even more job losses than a short-lived debt ceiling breach, in both the short- and long-term." If there were to be a default, Moody's sees two scenarios. As Insider previously reported, Republican lawmakers have yet to detail where exactly they want to cut spending in a debt ceiling deal, but they have floated some ideas.

We're buying 25 shares of Johnson & Johnson (JNJ) at roughly $153.55 each. We chose Johnson & Johnson . JNJ YTD mountain Johnson & Johnson (JNJ) YTD performance Johnson & Johnson has had its struggles this year due to an overhang related to talc litigation . Later this year, J & J will separate its consumer health business, which will be called Kenvue, from its pharma and medtech business, which will keep the Johnson & Johnson name. For example, J & J should be able to allocate more resources to research and development (R & D), while Kenvue can look for more bolt-on acquisitions to boost growth.

"If corporate profits were to decline from the extremely high levels that we saw recently, would it be possible to sustain" growth in workers' benefits "even as we get inflation down to the target of 2%?" Democratic Senator Chris Van Hollen asked Powell during the Fed chief's semi-annual testimony before the U.S. Senate Banking Committee. "Wages affect prices and prices affect wages," Powell said, associating current earnings growth to the current ultra-low unemployment rate of 3.4%, and suggesting the labor market may need to weaken at least somewhat for inflation to fall. SHORTAGESUltimately, Powell said he felt profits would likely moderate on their own as the U.S. economy moves beyond the pandemic. "What we're seeing in the economy is pretty much about shortages ... supply chain blockages," Powell said.

Like Willis, private economists and analysts at payroll firms and staffing companies also see a labor market that is stressed but adjusting. A recent Goldman Sachs study concluded wage growth should continue slowing even with the current low unemployment rate of 3.4%. But even that came with slowing wage growth, and the gain was amplified by seasonal adjustments used to factor out expected swings in hiring during holidays and summer. Nela Richardson, chief economist at payroll processor ADP, said even as economy-wide hiring remains strong, the tech layoffs may be helping mute overall wage growth. "If that is a trend...we would expect there would be less drive for wage growth," she said.

☆ Fed's Powell heads to Capitol Hill this week, and he's going to have his hands full
▼ + stars: | 2023-03-06 | by ( Jeff Cox | ) www.cnbc.com time to read: +5 min

It was made worse by the Fed not recognizing it in 2021," said Komal Sri-Kumar, president of Sri-Kumar Global Strategies. "If you're going to have a no-landing scenario, then you're going to accept 5% inflation, and that's politically unacceptable. He has to work on bringing inflation down, and because the economy is so strong it's going to get delayed. 'Ongoing increases' aheadFor his part, Powell will have to find a landing spot between the competing views on policy. However, Guha said that Powell is unlikely to tee up the half-point, or 50 basis point, rate hike later this month that some investors fear.

☆ Stocks week ahead: It's hell week on Wall Street
▼ + stars: | 2023-03-05 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

The unflinching resilience of the US labor market is one of — if not the — greatest source of tension in today’s economy. That means the Fed’s already painful rate hikes are likely to continue until the job market simmers. In just one year, the Federal Reserve has raised interest rates from nearly zero to a range of 4.5% to 4.75% to cool the economy. The labor market is stronger than ever: The US added a shocking 517,000 jobs in January and knocked unemployment down to its lowest level since 1969. If the labor market remains strong, more Fed-induced pain lies ahead.

"In response...the FOMC continued to rapidly increase interest rates and reduce its securities holdings," the report said, and also "anticipates that ongoing increases in the target range will be appropriate." The document noted that U.S. financial conditions have tightened since the Fed's last report to Congress in June, and hinted that the impact of monetary policy was intensifying in some corners of the economy. Business loans by banks grew through 2022 "but decelerated in the fourth quarter," the report said. Fed Chair Jerome Powell will discuss the report and Fed policy in back-to-back congressional hearings next week, appearing at 10 a.m. EST Tuesday before the Senate Banking Committee and Wednesday at 10 a.m. before the House Financial Services Committee. It will be Powell's first testimony since the Republican party took control of the House after the November midterm elections.

Senators have asked giant cryptocurrency exchange Binance and its U.S. partner Binance.US for information about their regulatory compliance and finances, citing a series of investigations by Reuters and some other media reports, according to a letter released on Wednesday. The collapse of rival crypto exchange FTX, whose founder Sam Bankman-Fried has been charged with fraud, “underscored the need for real transparency and accountability in the crypto industry," the senators wrote. Binance has previously disputed Reuters’ articles, calling the illicit-fund calculations inaccurate and the descriptions of its compliance controls "outdated." In the letter, first reported by the Wall Street Journal, the senators requested Binance and Binance.US provide documents and answers to their questions by March 16. The senators are seeking information about the companies’ balance sheets, U.S.-based users, anti-money laundering policies.

☆ The US dollar is at a crossroads
▼ + stars: | 2023-03-02 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN —Wall Street investors are reaching for their neck braces in preparation for yet another volatile swing in stock markets: A surging US dollar. What’s happening: The US dollar “finds itself at a significant crossroads yet again,” said Krosby. Don’t forget the debt ceiling: Another significant threat to the dollar is looming in Congress — the ongoing debt ceiling fight. “It would certainly undermine the role of the dollar as a reserve currency that is used in transactions all over the world. Initial claims have come in lower than expected in recent weeks and remain well below their pre-pandemic levels.

☆ Analysis: Rebounding U.S. dollar a growing headache for investors
▼ + stars: | 2023-03-01 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +5 min

NEW YORK, March 1 (Reuters) - Investors reeling from the recent volatility in global financial markets are eyeing another potential worry: a rebounding dollar. MSCI’s index for emerging market stocks (.MSCIEF) has slipped 8% from its January highs, while the MSCI Emerging Markets Currency Index (.MIEM00000CUS) is down 3% from its early February high. "A stronger dollar poses a problem for risk assets," said Lauren Goodwin, economist and portfolio strategist at New York Life Investments. The dollar's recent rebound has weighed on various risk assetsBecause of the dollar's central role in the global financial system, its fluctuations have widespread repercussions. Whether the dollar continues its rebound will depend in part on investors' perceptions of how much higher the Fed will need to raise interest rates.

☆ Top Senate Democrats press Chamber of Commerce on threat to sue FTC over noncompete clause ban
▼ + stars: | 2023-02-28 | by ( Chelsey Cox | ) www.cnbc.com time to read: +4 min

Signage is seen on the Chamber Of Commerce Building in the Manhattan borough of New York City, New York, U.S., April 21, 2021. WASHINGTON — Two top Senate Democrats on Tuesday will press the largest U.S. business advocacy organization on its threat to sue the Federal Trade Commission over a plan to ban noncompete clauses. Elizabeth Warren, D-Mass., and Sheldon Whitehouse, D-R.I., are requesting detailed information from the U.S. Chamber of Commerce about its plan to sue the FTC to halt the proposal. The new rule that would bar employers from imposing noncompete clauses could increase workers' wages by $300 billion a year, according to the FTC. A ban in Oregon helped raise wages for lower wage workers by 2% to 3%, according to a 2021 study.

☆ Ohio Democratic Sen. Sherrod Brown, who'll likely face a tough reelection fight in 2024, says he won't 'run from Biden': 'I run my own race, and my own brand'
▼ + stars: | 2023-02-26 | by ( John L. Dorman | ) www.businessinsider.com time to read: +3 min

Sen. Sherrod Brown told Politico he was "fine" with Biden running on the same ballot as him in 2024. Brown is seeking a fourth term in the Senate and has carved out a unique appeal among Ohio voters. And despite President Joe Biden's eight-point statewide loss to former President Donald Trump in 2020, Brown told Politico he was "fine" running alongside the president on the same ballot should the commander-in-chief seek reelection next year. So, I'm not going to run from Biden," Brown told Politico. In the 2018 Senate race, when Brown defeated then-GOP Rep. Jim Renacci, the senator won 98% of Democrats, 56% of Independents, and 11% of Republicans, per CNN exit polling.

The two-day meeting ended on Feb. 1 with the central bank raising its target interest rate by a quarter of a percentage point, a return to a more standard rate hike size after a year of sequential three-quarter point and half-point increases. The Fed uses the Personal Consumption Expenditures price index in setting its 2% inflation target. Since the meeting, some Fed officials have acknowledged they had pushed to continue with larger half-point rate increases at the last meeting, while investors have boosted their own outlook for where the Fed may end up. Most do not see the Fed returning to larger half-point increases now that they have slowed. While the minutes released today are particularly dated, given the jobs and inflation numbers released since then, policymakers will update their views next month with new economic and interest rate projections issued after the Fed's March 21-22 meeting.

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