The Dow Jones and the S&P 500 erased early losses and are trading higher after Fed Chair Powell reaffirmed that the economy needs support during his semiannual testimony before Congress. Bond buying will continue at its current pace until FED sees the actual data moving closer to inflation and employment goals. Powell said that there is a lot of slack in the labor market and there is a long way to go to maximum employment.
Today's comments from Powell did not provide any new news regarding the Fed's further policy, but did lead to a rebound in the stock market. Today, investors' attention is focused on rising US bond yields. Yields are rising even though the Fed reiterates that the current policy will not change for a long time.
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US30 moved sharply higher during Powell's testimony and is currently testing its all-time high at 31664 pts. Source:xStation5
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