Powell is the Federal Reserve Chairman.
The pool is pictured.
The Federal Reserve's chief warned that the Omicron variant of coronaviruses could hurt the world's largest economy, as investors pushed into US government bonds.
The US stock market opened Tuesday in the red after the CEO of Moderna said he doubts existing vaccines will be effective against the new Omicron coronaviruses. Bond prices rose and the yield went down as inventors backed off from riskier assets.
The 10-year Treasury yield dropped to its lowest level in three weeks as a result of these moves. The 30-year Treasury bond's yield fell to the lowest level in over a month. Mortgages and auto loans are benchmarked to Treasury yields.
Before Powell testified on Capitol Hill, investors considered a gloomy outlook from the Federal Reserve Chairman.
Powell said in prepared remarks that the recent rise in COVID-19 cases and the emergence of the Omicron variant pose downside risks to employment and economic activity.
The labor market could be slowed and supply-chain disruptions could increase if people are worried about the virus.
In recent weeks, the yield on the 10-year Treasury has risen as investors price in the highest consumer price inflation in 25 years.
US oil prices sank by more than 3%, trading under $68 a barrel on the prospect of lower oil demand in the face of a wider spread of Omicron, while gold, considered a haven asset and a hedge against inflation, rose by 0.6% to $1,794 an ounce.
Business Insider has an original article.
