The US 10-year yield is just one basis point higher than it was before freshly-minted Fed Chairman Jerome Powell released the text of his remarks to the House Financial Services Committee. Powell evidently was doing his best to be neutral. The key phrase in his prepared remarks was: “The Committee views the near-term risks to the economic outlook as roughly balanced but will continue to monitor inflation developments closely.”

Given that the Fed’s preferred measure of inflation, the Personal Consumption Expenditure index, is running at just 1.7% year on year (without food and energy), Powell is signaling the gradual pace of tightening that is already built into the market.

The US dollar is marginally higher at 1.230 euros (vs. 1.2320 before Powell’s remarks were released. US equity futures are marginally higher.