US Federal Reserve Chairman testifies in front of Senate Banking Committee

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Sky News Business Reporter Edward Boyd says there “wasn’t much of a reaction” from the markets following US Federal Reserve Chairman Jerome Powell testifying in front of the Senate Banking Committee.

“He’s trying to be a bit more tight-lipped, a bit more guarded with his comments to Congress overnight,” Mr Boyd said.

“The overarching message was we’re on the right path, we’re heading there, inflation is slowly coming down, but we’re not ready to commit yet to just saying outright the rates are going to come down in September.

“There’s still a chance rates are going to come down in September, but Jerome Powell and his messaging last night was a little bit different to previous times where he’s been a lot more forceful saying rates are going to start to fall – he didn’t really say that last night.

“So, there wasn’t much of a market reaction.”