What’s in Today’s Report:
- Powell’s Senate Testimony Takeaways (Not a Dovish Catalyst Near Term)
- Did the Fed Quietly Make A Long Term Policy Change? (It Means Higher Inflation Could Be Coming)
Futures are marginally lower following the escalation of tensions between India and Pakistan. Outside of geo-politics, it was a quiet night.
Pakistan reportedly shot down two Indian fighter jets and carried out air strikes in Kashmir in the biggest uptick in tensions between the two nuclear nations in decades.
Economic data was spare as Euro Zone money supply slightly missed estimates (3.9% vs. (E) 4.0%).
Today the media headlines will focus on the Cohen testimony and the Trump/Kim summit in Vietnam, but neither event will impact markets.
So, we’ll remain focused on Powell’s House Financial Services Committee Testimony (10:00 a.m. ET) to see if there are any more clues about balance sheet reduction, and we’ll also watch Pending Home Sales (E: 0.9%) for any signs of stabilization in housing.