Powell Looks for ‘More Good’ Inflation Data

US Federal Reserve Chair Jerome Powell said he needs “more good data” to strengthen the case that inflation is moving toward the central bank’s 2% target. Recent readings may point to “modest further progress” on prices, he said, but apparently Powell wants more. Speaking to Senate lawmakers Tuesday, he was careful not to offer a timeline for interest-rate cuts, which investors are now betting will begin in September. But he emphasized mounting signs of a cooling job market after government data published July 5 showed a third straight month of rising unemployment. “Elevated inflation is not the only risk we face,” he said on the first of two days of testimony. “Reducing policy restraint too late or too little could unduly weaken economic activity and employment.”

Stocks closed at all-time highs again, with Powell’s remarks doing little to alter bets the Fed will be able to cut interest rates this year. Financial shares led gains on Tuesday, with the S&P 500 up for a sixth straight session—its longest winning run since January. Shorter-term Treasuries outperformed on bets they would more likely benefit from policy easing. Here’s your markets wrap.