When it comes to the Fed Chair's semi-annual congressional testimonies, the first of the two (in this case, yesterday's Senate Banking Committee) tends to get most of the market-moving potential out of the way. That's not necessarily because the Senate asks smarter questions than the House, but rather simply because the prepared remarks are the same in both cases. This time around, the prepared remarks garnered the biggest response.
Still... the House Financial Services Committee is always good for some entertainment value. This is fairly important actually, because if you can't find a way to laugh at some of what transpires in these testimonies, anger and depression are real risks.
Before Yellen chats with Jeb and company, there are a few pieces of economic data. The only potential market mover among them is Industrial Production at 9:15am. Concurrent with Yellen's reading of prepared remarks is the release of the NAHB's Housing Market Index. Markets have an on-again, off-again relationship with this report--mostly off. Recently though, weaker-than-expected reports caught the market's collective eye, largely because the data had been incessantly bullish before that. Some market participants inferred 'something's changed!' And they were right.
Expectations now call for the bounce back to remain bouncy. So stronger data is less likely to be meaningful here, but still potentially interesting to the mortgage and real-estate communities.
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