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Fed Chair Powell, big pharma head to the Hill — What to know in markets Tuesday

Heidi Chung

Federal Reserve Chairman Jerome Powell heads to Capitol Hill to testify before the Senate Banking Committee on Tuesday. It is expected that Powell will reiterate his “patient” monetary policy path this year and outline the Fed’s plans for shrinking the central bank’s balance sheet.

“We will be looking for insight into the underpinnings on Fed’s confidence into the current strength of the US economy, the risks they see in the outlook for growth, and their fears over the path of inflation,” UBS wrote in a note on Friday. “We do not expect Powell to broach the subject of monetary policy rules or altering the inflation target.”

Yahoo Finance's full coverage of Powell's testimony

Yahoo Finance will have full coverage of Powell’s testimony starting at 10 a.m. ET.

Additionally on Tuesday, the feud over drug prices is likely to heat up. CEOs from the biggest pharmaceutical companies will also be heading to the Hill for a hearing with the Senate Finance Committee on drug prices. CEOs from AbbVie, AstraZeneca, Bristol-Myers Squibb, Merck, Pfizer and Sanofi are expected to attend. Johnson & Johnson will be sending its group chairman for pharmaceuticals in the Americas in place of the company’s CEO. President Trump has repeatedly taken jabs at drugmakers for high prices. Tuesday’s hearing, "Drug Pricing in America: A Prescription for Change, Part II” will look to address those concerns.

The biggest earnings reports on Tuesday include AutoZone (AZO), Discovery (DISCA), Home Depot (HD), Macy’s (M) before market open. After the bell, e.l.f. beauty (ELF), Mylan (MYL), Palo Alto Networks (PANW), Papa John’s (PZZA), Toll Brothers (TOL), Weight Watchers (WTW) will report.

Heidi Chung is a reporter at Yahoo Finance. Follow her on Twitter: @heidi_chung.

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