Powell Testifies

Jerome Powell gave his first testimony before the House Financial Services Committee. Only the first 30 minutes is worth watching.

I watch these closely  to get hints about what the fed might do. As he spoke the dollar and treasury yields jumped and stocks fell. The market interpreted his comments as hawkish. The new word is there might be four rate hikes this year instead of three.
However, he said nothing that was not already detailed in the monetary policy report published on February 23rd. The monetary policy report praised the Taylor Rule. From the report:

Economists have analyzed many monetary policy rules, including the well-known Taylor (1993) rule as well as other rules that will be discussed later: the “balanced approach” rule, the “adjusted Taylor (1993)” rule, the “price level” rule, and the “first difference” rule (figure A).2 These policy rules generally embody the three key principles of good monetary policy noted earlier.

I don’t believe Powell  is going to do anything that might surprise the market.