Futures Pointing To Rebound On Wall Street Following Powell’s Prepared Remarks

Stocks are likely to move to the upside in early trading on Wednesday, regaining ground after moving notably lower over the two previous sessions. The major index futures are currently pointing to a higher open for the markets, with the S&P 500 futures up by 0.5 percent.

The futures remained positive as the Federal Reserve released Fed Chair Jerome Powell’s prepared remarks before the House Financial Services Committee.

Powell will tell members of Congress that it will likely be appropriate for the central bank to begin lowering interest rates at “some point this year” but reiterate officials need “greater confidence” inflation is moving sustainably toward 2 percent.

The Fed Chief described the economic outlook as “uncertain” and said progress towards the Fed’s 2 percent inflation objective is “not assured.”

“Reducing policy restraint too soon or too much could result in a reversal of progress we have seen in inflation and ultimately require even tighter policy to get inflation back to 2 percent,” Powell said.

He added, “At the same time, reducing policy restraint too late or too little could unduly weaken economic activity and employment.”

Powell said future interest rate decisions will be based on careful assessment of the incoming data, the evolving outlook, and the balance of risks.

Meanwhile, a report released by payroll processor ADP showed private sector employment in the U.S. increased by slightly less than expected in the month of February.

ADP said private sector employment rose by 140,000 jobs in February after climbing by an upwardly revised 111,000 jobs in January.

Economists had expected private sector employment to grow by 150,000 jobs compared to the addition of 107,000 jobs originally reported for the previous month.

Shortly after the start of trading, the Labor Department is due to release its report on job openings in the month of January. Job openings are expected to dip to 8.9 million in January from 9.0 million in December.

The Commerce Department…