Powell's Congressional Testimony: More Good Data Needed to Boost Confidence in Lowering Inflation

Recent data shows moderate further progress in reducing inflation; given the past two years, high inflation is not the only economic risk.

Premature or excessive rate cuts could hinder or reverse the decline in inflation, while acting too late or too little could overly weaken the economy and employment.

The labor market is strong but not overheated; recent data shows significant cooling.

The next step is unlikely to be a rate hike, and no timeline for rate cuts is provided; unexpectedly weak labor market could be a reason for rate cuts.

Regulators are very close to finalizing revisions to bank capital requirements, with a potential 60-day comment period, and the final version could be released early next year.

Tight monetary policy affects housing market activity; the Fed can best help the housing market by lowering inflation; banks' commercial real estate risks could persist for years.

Immigration could help lower inflation in the short term but has a neutral long-term impact.

Powell did not provide any recent policy signals; financial markets reacted calmly, with the S&P and Nasdaq maintaining gains. Treasury yields hit daily highs after Powell said more good data is needed to boost confidence in rate cuts.