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Jacob: 00:00 Today on In Case You Missed It? Jerome Powell's comments, wrapping those up to Congress.

Jacob: 00:03 We had day one and day two. Day Two was Thursday, day one was Wednesday. He said, Jerome Powell, chairman of the Federal Reserve said three really important things. The first thing - macro factors are creating uncertainty. That's not just trade. Foreign economies are really falling. The, the French government just issued negative yielding debt. That's not a good sign. I don't know why they did issued negative yielding debt, but not a good sign for sure. That could trickle into the U.S. economy. Second thing he said on Wednesday, inflation remains muted. 3.1% wage growth is not going to do it for inflation. That's not, so you're not going to get a rate hike for sure. Almost 0%. Uh, a congress woman asked, "did the strong June jobs report changed your mind about a rate cut?"

Jacob: 00:45 And the answer immediately was "absolutely not. It does not change my mind." That was day one. So 10-year treasury yield fell on that. Day two, trade tensions are creating supply chain uncertainty. CEOs are deciding, we're not going to really up the capital expenditures for the next several years because we don't know what's going on on the trade front. So you're not looking at a great hiring picture. That was day two of his meeting with Congress Thursday. Second thing he said, a worried about global manufacturing a pull back, so that's not good for the job market, not good for demand and inflation. You're probably gonna get a rate cut in July. That's what these two days signify. The 10-year treasury actually rose on Thursday to 2.1% that's probably just some give back. We're still fully pricing in a rate cut. Stocks fell a little bit. They're up a lot this year. I want you to look at our premium site Real Money. You gotta look at it. Tom Graff. Five key takeaways. Forget this piece of paper. Five key takeaways about those rate cuts from Tom Graff. Stick with In Case You Missed It.

Jerome Powell, chairman of the Federal Reserve can breath a sigh of relief now that he's finished answered pressing questions from Congress. 

But the market can breathe, too, because it looks like it will get its rate cut. 

Here's what Powell said over the two days, and how the markets reacted.

Day One

Wednesday, Powell told the House Financial Services Committee that many foreign economies are performing poorly, a situation that could bleed into U.S. economic growth. France, for example, issued negative yielding debt for the first time in its history, underscoring low inflation and poor economic demand. 

Powell also said "Inflation remains muted," and that the current wage growth rate of 3.1% isn't enough to move inflation higher, another signal that the Fed may cut rates soon. 

A Congresswoman asked Powell if the better-than-expected June jobs report might dissuade Powell from pushing for a rate cut, and his immediate answer was "The answer is no."

Day Two

On Thursday, Powell told Senators that the trade tensions, which he said still exist, are creating supply chain uncertainty. This means corporate executives will be cautious about hiring because they may not plan for huge amounts of investment in the future. If supply chain economics are uncertain, management teams don't want to over invest and over hire. This dynamic hurts employment and therefore inflation. That's another signal of a rate cut. 

He also mentioned he's worried there may be a global manufacturing pullback. The same dynamic would be at play there. 

Related. 5 Key Takeaways From the Fed Minutes and Powell's Testimony

Market Impact

With rate cuts likely to come soon, one would think the 10 year treasury yield would fall after Powell's comments. It's up to 2.1% in the past five days, but that's still pricing in one rate cut. It had dropped  -- somewhat inappropriately to some -- to 1.95% days before.  

Stock investors were looking for a rate cut, and the S&P 500 is up 0.6% since Tuesday's close, just before Powell's comments. The S&P 500 had already risen hugely in June, in hopes of a cut. 

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