Starting March 7, a series of events and reports will certainly have a huge impact on the market and price direction. Federal Reserve Chairman Jerome Powell will address the Senate Banking Committee on Tuesday, marking the start of the two-day event. On Wednesday, Powell will testify on financial services.
Powell's testimony will be followed by the Department of Labor's nonfarm payrolls report on Friday, March 10.
According to FA-Mag.com (Financial Advisor), two Federal Reserve policymakers have warned that the recent stronger-than-expected employment report could push them to raise interest rates more than previously thought. This is one of the main reasons why this week's employment report, one of the latest critical reports used by the Federal Reserve in its decisions at the upcoming March FOMC meeting, will be of key importance.
The more hawkish faction of the Fed continues its strong stance, which was evident over the weekend. On Saturday, San Francisco Federal Reserve President Mary Daly discussed economic and policy issues with Michael Strain, director of economic policy studies at the American Enterprise Institute.
It was about the fact that the economy has a good momentum. And it looks like monetary policy is starting to have an impact. However, there is some slowdown in interest rate sensitive sectors that could be predicted.
Throughout the interview, she continued to emphasize the Fed's hawkish stance, stating that Fed policy is likely to continue to tighten.
The last major report before the FOMC meeting is the CPI data, which will be released on March 14. These events are sure to have a strong impact on on the market sentiment of investors.
Over the past few weeks, the dollar has been the main driver of price movements.
U.S. bond yields continue to rise. Last week, U.S. 10-year bond yields topped 4%, hitting their highest level since November. At the same time, U.S. two-year bond yields are approaching 5%.