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Reuters reports that the Fed says Powell’s prepared testimony for house hearing on Wednesday will be identical to remarks delivered today in the Senate.

The overriding message from US Treasury Secretary Mnuchin and Fed Chairman Powell’s joint testimony to the Senate Banking Committee is more fiscal stimulus is needed now, analysts at ANZ bank explained:

”Mnuchin urged Congress to make a decision before the current session breaks up for Christmas.”

”He favours extending unemployment benefits and deploying the unused funds in the Paycheck Protection Program. Powell strongly supports extra fiscal stimulus that will help get the economy to the other side.”

Market implications

Strong stocks, weak dollar, solid euro and high-beta forex in general. 

 

  • Wall Street Close: The risk-on flows keep on flowing
  • EUR/USD leaps to fresh highs with a bullish hourly close