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Investors brace for Fed Chair Powell’s speech following strong jobs report

Yahoo Finance’s Jennifer Schonberger joins the Live show to discuss the expectations for Fed Chair Powell’s speech.

Video Transcript

JULIE HYMAN: Here are the three things you need to know this morning. Investors are on the edge of their seats as they anxiously await Fed Chair Jay Powell's latest commentary. Markets will look for any hints of future rate hikes in the wake of Friday's blowout jobs report.

BRIAN SOZZI: And Pinterest under pressure. The social-media giant issued cautious guidance for the March quarter. That has rattled investors and has sent the stock lower.

BRAD SMITH: And Chegg's forecasts also disappointing investors. CEO Dan Rosensweig brushing off the threat of AI platforms like ChatGPT. We're going to dive into it today.

BRIAN SOZZI: All right, let's get started with the first thing to know this morning. Federal Reserve Chair Jay Powell is set to give remarks in the noon hour today, his first speech since the Fed's latest rate hike last week and his first chance to comment on Friday's big jobs number.

Yahoo Finance's Jen Schonberger is here to give us the biggest item everyone on our platform needs to know about. Jen.

JENNIFER SCHONBERGER: Hey there. Good morning to you, Brian. That's right. All eyes on Fed Chair Jay Powell this afternoon and whether that latest jobs report changes the calculus to raise interest rates higher than previously expected. More than 500,000 jobs were created back in December, a blowout report, though average hourly earnings grew at a pace of 4.4%, slowing down from the pace seen in November, though that's still well above to 2% to 3% wage growth the Fed would like to see.

Now, Powell said at his post policy press meeting-- press conference last week that the job market is still very strong and that there is, quote, "still work to do." He said officials will be looking at the data through March for how much higher to raise rates but haven't made a decision yet, though he said rates could, quote, "certainly be higher than what we're writing down right now." In December, the Fed penciled in rates peaking between 5% to 5 and 1/4%.

Now, we will hear from Fed Chair Powell at 12:30 this afternoon when he participates in a Q&A with The Economic Club of Washington. Back to you.

BRIAN SOZZI: Thanks so much, Jen. Appreciate it.