Hourly Market Review - Mar 6, 2024 12 PM
Federal Reserve Chair Jerome Powell reiterated that he expects interest rates to start decreasing this year, although he did not specify when. In his prepared remarks for Congress, Powell emphasized the Fed's focus on inflation risks and the need for careful assessment before making any adjustments to the policy rate. He stated that the Fed does not anticipate reducing the target range until there is greater confidence that inflation is moving sustainably toward the 2% target.
During a Q&A session with the House Financial Services Committee, Powell mentioned the need for more data before making decisions on rates. He expressed optimism about the strength of the economy and labor market and indicated that the Fed will carefully approach any policy changes.
Stocks rose and Treasury yields mostly fell as Powell spoke. Powell's speech did not introduce new information on monetary policy or the Fed's economic outlook but highlighted the Fed's cautious stance on not reversing progress made against inflation. He suggested that the policy rate is likely at its peak for this tightening cycle and that policy restraint may be dialed back later in the year, depending on economic developments.
Movers of the hour:
Wave Life Sciences is up 38.83% at $6.65.
American Public Education is up 34.56% at $15.30.
Airship AI Holdings is up 34.34% at $6.67.
Vincerx Pharma is up 32.57% at $7.33.
Dada is up 29.44% at $2.55.