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Katherine Ross: Federal Reserve chairman, Jerome Powell just wrapped up his testimony in front of the House Financial Committee. Sarge, what was your biggest takeaway?

Sarge: Well, I, I love the fact that he endorsed the FOMC's view from June rather than reset expectations. I believe it's really imperative that we reduce short term rates because let's face it, we would love to see long term rates go higher, but there's this gap of 240 basis points or so between German boons and US 10 years--the German 10 year boons and US 10 year notes--and it almost never changes because that's where we know European buyers come in or international buyers. So we will have to work on the short end. By reducing the short end, by cutting those rates, we'll actually steepen the curve because we believe that the long end will be a little more stationary than, than shorter, and we're seeing that today. We're actually seeing the three months in the 10 year come rather close to uninverting for the first time in I don't know how long it's been. It's been a while, I think the three month is probably last I looked at paying about 2.15 and we got to about 2.13 on the 10 year. So of course there's a long way to go after that before you have a healthy yield curve. But this is a big deal and he's massaging the yield curve in the right way, which is the best way to go at having a healthy economy. You know, forget all these economists that you listen to. I love these guys that have never run anything and they want to tell you that the economy is too strong to cut rates. They don't understand the game. The game is relative. The dollar is important. If you don't do something to massage the dollar lower versus relative to other currencies, you are putting the US economy and the entire S&P 500 at a competitive disadvantage. I think the president has harped on that. I don't know what people think of the president, like him dislike him. He's right about this. And I stand by that.

Here's what investors need to know about Federal Reserve Chairman Jerome Powell's testimony in front of the House Financial Committee. 

Powell testified on both Wednesday and Thursday. 

Real Money contributor Stephen "Sarge" Guilfoyle broke down his biggest takeaway from Powell's testimony.

"I love the fact that he endorsed the FOMC's view from June rather than reset expectations. I believe it's really imperative that we reduce short term rates because let's face it, we would love to see long term rates go higher, but there's this gap of 240 basis points or so between German boons and US 10 years--the German 10 year boons and US 10 year notes--and it almost never changes because that's where we know European buyers come in or international buyers, so we will have to work on the short end by reducing the short end, by cutting those rates, we'll actually steepen the curve because we believe that the long end will be a little more stationary than, than shorter, and we're seeing that today," he explained. 

Fed's Powell's Two Days With Congress -- A Wrap up