Next week could potentially bring more changes from The Fed, as Janet Yellen, Chair of the Board of Governors of the Federal Reserve System, is scheduled to testify before the House of Representatives Financial Services Committee on Wednesday, July 12 at 10a.m. EDT before moving on to the Senate Banking Committee in the second half of The Fed’s semi-annual report to congress on Thursday, July 13. Yellen’s testimony on Wednesday will be followed by the release of the Beige Book at 2 p.m. EDT.
Testimony will include the current economic situation and outlook, and will outline The Fed’s monetary policy going forward. Yellen has previously stated in her official statements that she expected a gradual increase in interest rates to keep in line with balance-sheet normalization, which The Fed would like to begin sometime this year.
Looking forward, The Fed has no reason to believe the economy won’t continue to expand, which is consistent with its position last month when it chose to raise interest rates.
Other Events in the Week Ahead:
Construction Spending Report, Wednesday 3:00 p.m. GMT
Freddie Mac Weekly Mortgage Survey, Thursday 10 a.m. EDT
Federal budget for June, Thursday 2 p.m. EDT