>> I, Jerome Powell.>> The anticipation is growing, as newly installed Federal Reserve Chairman Jerome Jay Powell testifies Tuesday before lawmakers in his first public comments since taking over the job from Janet Yellen. What a Fed chief says is always important, but there's even more potentially riding on this testimony, according to Reuters' Federal Reserve correspondent Jonathan Spicer.
>> This is a potentially quite the infliction point for the Central Bank, just as they have a rookie chair. Jay Powell is facing an economy that is potentially running hot. That's something we haven't even thought about a decade here with this unexpected boost from tax cuts, fiscal spending.
Suddenly we have some real hints that inflation might be perking up at long last after five years below target. And we're starting to feeling it in the markets with our bout of volatility the last few weeks.>> The volatility earlier this month that took the stock market ever so briefly into correction territory has now shifted in the opposite direction.
The DOW is now 10% above the panic levels from early February. Powell, who is a Republican, is not likely to be pressed hard by the majority team. And even if he's pressured by the Democrats, he's very unlikely to rock the boat.>> I mean, remember, Jay Powell became chair of the Federal Reserve on one of the if not the worst down days in financial markets.
That's gotta be in the back of his head as he takes the microphone in front of Congress. And there is a lot of talk potentially that the Fed could raise rates once more than it plans this year, perhaps four rate hikes instead of three. But really the Fed doesn't need to make that decision anytime soon.
>> Which means Powell has the advantage of sticking to the script Wall Street has come to memorize. The Fed is on track to raise rates at a gradual pace.