EM CEEMEA CREDIT: CEZFP: FY24 results inline - neutral for spreads

Key Powell quotes from the congressional testimony (link), all of which are almost entirely verbatim from the January FOMC press conference:

• "With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance." (Identical to the January FOMC prepared press conference statement)
• "If the economy remains strong and inflation does not continue to move sustainably toward 2%, we can maintain policy restraint for longer. If the labor market were to weaken unexpectedly or inflation were to fall more quickly than anticipated, we can ease policy accordingly." (Almost verbatim)
• "We know that reducing policy restraint too fast or too much could hinder progress on inflation. At the same time, reducing policy restraint too slowly or too little could unduly weaken economic activity and employment. In considering the extent and timing of additional adjustments to the target range for the federal funds rate, the FOMC will assess incoming data, the evolving outlook, and the balance of risks." (The only thing missing in this identical language from his January press conference is the final line: "We're not on any preset course.")
• On data, "Labor market conditions have cooled from their formerly overheated state and remain solid. Inflation has moved much closer to our 2 percent longer-run goal, though it remains somewhat elevated" is verbatim from January's press conference, though he is now able to include January's employment report in his congressional commentary ("Following earlier increases, the unemployment rate has been steady since the middle of last year and, at 4 percent in January, remains low.")
• In other words, no surprises - we await the Q&A.

• JPYUSD (7th Mar) 65.00p, sold at 0.03 and 0.025 in 9k total.
• JPYUSD (7th Mar) 61.00p, also sold at 0.03 in ~2.7k.

Little to note from Riksbank Deputy Governor Seim, whose speech summary is very concise and re-iterates her cautious sentiment from the January meeting minutes. Seim appears content with the current level of interest rates for now. 

• “ The interest rate is now at a level that appears consistent with inflation at target level in the short and long term, and that makes monetary policy well positioned to manage future challenges”.
• “This is true regardless of whether domestic consumption and GDP growth turn out to be weaker than expected, or whether the tense global situation leads to supply shocks that create inflationary impulses in the Swedish economy”.
• “If the outlook for inflation and economic activity changes, we are, as always, prepared to adjust monetary policy”.