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New US Federal Reserve Chair Powell’s Confirmation Hearing Tomorrow

Published November 27, 2017
  • Fed Governor Powell is set to appear before the Senate Banking Committee tomorrow to be confirmed as the new Chair of the Federal Reserve. Market participants will be hoping for new hints about the path of future interest rates and US monetary policy. It is not expected that Powell’s tone will be a major departure from Yellen, though his views on banking regulation are expected to be less restrictive.
  • The greenback remains in the doldrums as the much-anticipated blend of tax reform, monetary policy tightening, and strong economic data failed to come to fruition. Trump’s tax plan, though easily passing in the House of Representatives, is far from a fait accompli with the Senate vote later this week. Last week, Yellen’s concerned comments around inflation, combined with the release of the minutes of the last FOMC meeting, dampened market expectations of the Fed’s 3 rate hikes in 2018. Lastly, recent US economic data has been a bit softer than markets were expecting, particularly on Durable Goods orders last week (-1.2% vs. 0.3% expected).
  • On the roster today: comments from FOMC members Kashkari and Dudley. Tomorrow, the Bank of Canada’s financial system review is at 10:30am EST followed by a Poloz / Wilkins press conference at 11:30am EST.
  • Crude oil prices are down this morning as markets look to the November 30 OPEC meeting in Vienna. Expectations are for the production pact to be extended, possibly until the end of 2018, in an effort to tighten global supply. WTI crude is down 1.32% to $58.17 with Brent crude down 0.33% to $63.65 at the time of writing.