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when federal reserve chairman Jerome Powell walks in to testify before Congress this week he'll do so with the heavy weight on their shoulders he's very job may be on the line Reuters fed watcher Trevor honey cut chairman Powell has a really tough job right now he has he is under political pressure he's under pressure from the president to cut interest rates and introduce new stimulus policies for the economy financial markets also pressuring power to cut the fates key lending rates when policy makers meet at the end of the month but a recent rebound in hiring suggests the economy may not be as weak as feared and may not need the fed to do anything to the labor market really doesn't seem to be %HESITATION week in a way that would justify a rate cut in fact feds past would say you know what like if if we cut rates now we could actually because %HESITATION markets to to go haywire we could we there could be too much stimulus in the economy inflation could kick off %HESITATION so this with this is a really unusual unusual time right now at Powell's press conference following the June meeting he seemed to indicate he was open to cutting rates if that will continue signs of weakness caused by the US China trade war risks seem to have grown but if that has changed Powell needs to say so he could use his congressional testimony to do that that's how wants to set up a cut in time for the the July meeting he's got to do he's got to do so pretty soon he's got to engage because markets think that that's what's going to happen if there's going to be a cut and if he wants to do something else he's got a kind of tell market's pretty soon that that's that that that's the case %HESITATION or else there could be a really bad reaction if the fed doesn't cut rates financial markets are predicting with one hundred percent certainty a rate cut at the July thirty thirty first meeting so markets will be hanging on his every word during his congressional testimony to hear if a rate cut is indeed coming in July later in the year or at all