Federal Reserve Chairman Jerome Powell upgraded cut rate with his testimony before the Senate Banking Committee Wednesday and House Financial Services Committee Wednesday.
The market shrugged off slightly higher-than-expected consumer price data, released earlier. Inflation rose 1
Expectations for a quarter-percentage point cut at the Fed's July 31 meeting are 80%, with the remaining 20% hoping for a 50 basis point decrease, according to the CME's FedWatch tool.
Remarks before the House on Wednesday, Powell noted that inflation continued to be below the central bank's 2% target.
Powell is appearing before the Senate Banking Committee on Thursday morning, where his two-day bi-annual testimony will conclude.