U.S. indices moved with uncertainty on Tuesday, as markets waited for testimonies from Treasury Secretary Janet Yellen, and Fed Chair Jerome Powell.
Current Fed chair Powell, and his predecessor Janet Yellen are both set to begin a two-day testimony before Congress later today.
The testimony will be in front of the House Financial Services Committee and will see both parties giving their view on the health of the U.S. economy.
As President Joe Biden’s $1.9 trillion stimulus package was recently passed through congress, today’s testimony will likely see Congress looking for validation in passing the bill.
Both the S&P 500 and Dow Jones traded lower ahead of the testimony.
Related: Fed to End Capital Relief for Banks
FTSE 100 falls despite British employment data
The United Kingdom’s FTSE 100 closed in the red on Tuesday, despite data showing that the country’s unemployment rate had fallen.
Figures released by the Office for National Statistics showed that the unemployment rate dropped to 5.0% from 5.1% in the final quarter of 2020.
Although many were expecting a slight increase in the jobless rate to 5.2%, many believe that recent government intervention helped to lower the rate.
Recently Finance Minister Rishi Sunak unveiled the country’s spring budget, and many believe that the renewed furlough scheme helped to cushion the blow of jobs lost due to lockdown.
Despite this, the country’s main index closed 0.40% lower on Tuesday.
Bitcoin falls to 2-week low on Fed comments
Comments from the head of the Federal Reserve late last night saw prices of Bitcoin fall to their lowest level in 2-weeks earlier today.
Prior to this evening’s testimony, Fed Chair Jerome Powell gave his view on the crypto market, and its current perceived value.
He stated, “Crypto assets are highly volatile, see bitcoin, and therefore not really useful as a store of value”.
Powell comments lead to BTCUSD trading at an intraday low of $52,935 earlier today, before rallying soon after.
The Fed chair added that “It’s more of a speculative asset that’s essentially a substitute for gold rather than for the dollar.
Prices of gold were also down on Tuesday.
Quote of the day – “It’s not what we do once in a while that shapes our lives. It’s what we do consistently.”– Tony Robbins