Chairman Powell's testimony was generally.......>

FED: Chairman Powell's testimony was generally upbeat, noting that infl has

reached the 2% target and is likely to stay near there with appropriate policy,

that 2Q growth is up from 1Q, that the unemp rate dipped to 4% and is expected

to fall further, and "that--for now--the best way forward is to keep gradually

raising the federal funds rate." He repeated that risks to the economy are

"roughly balanced."

- Powell noted that challenge is to keep inflation near 2%. He said the 2%

objective is "symmetric," explaining that the "the FOMC would be concerned if

inflation were running persistently above or below our objective."

- Powell made no mention of the yield curve and said it is "difficult to predict

the ultimate outcome of current discussions over trade policy." 

- On fiscal policy, he noted that they are likely to support continued

expansion, but said it hard to predict the exact timing and size of its impact

on the economy.

-On monetary rules, he called them helpful, but cautioned using them requires

"careful judgment."