Investors will focus on Fed Chair Kevin Walsh’s semiannual testimony to Congress
on Tuesday and Wednesday for his latest views on inflation, interest rates and
progress on his Fed reform agenda. Walsh may be questioned on broad reform
plans; the Fed has named five working groups to review issues from
communications to balance-sheet size. Market participants expect Tuesday’s
inflation print and Walsh’s testimony to be the next directional catalysts, with
liquidity and confidence subdued ahead of those releases.
