Fed Chairman Powell CARES Act Testimony: Optimistic testimony to help revive the risk trade

Hiring and spending gains happened more rapidly than FED’s projections. Jerome Powell, Chairman of the Federal Reserve, and Treasury Secretary Steven Mnuchin will speak today at 16:30 GMT and FXStreet’s analyst Joseph Trevisani expects an upbeat speech to reanimate risk trade.

Key quotes

“Mr. Powell and Treasury Secretary Mnuchin will speak on Capitol Hill on Tuesday in a quarterly appearance required by the coronavirus relief legislation. His remarks were published on the Fed website on Monday. ‘While recent economic data offer some positive signs, we are keeping in mind that more than 20 million Americans have lost their job,’ noted Mr. Powell’s statement.” 

“The increase in coronavirus cases though not in fatalities in a number of American states has prompted a mild risk-aversion rise in the USD. If Mr. Powell can be more optimistic than he was two weeks ago in his Semiannual Monetary Report to Congress on June 16 and 17 currency traders may be able to clip the same risk discount coupon at use in the stock market.”