July 16, 2026

Federal Reserve Chairman Kevin Warsh reiterated to Congress his commitment to controlling inflation

International

Federal Reserve Chairman Kevin Warsh delivered his semiannual monetary policy testimony yesterday before the Senate Banking Committee, following his appearance on Tuesday before the House Financial Services Committee. In both presentations, Warsh reiterated the Federal Open Market Committee's (FOMC) commitment to controlling inflation, without offering any concrete indications about the direction of upcoming interest rate decisions. He also emphasized the Fed's independence from political pressure and highlighted investment in artificial intelligence as one of the most relevant factors for current economic performance, although he acknowledged uncertainty regarding its ultimate impact on growth and employment.

Against this backdrop, the main U.S. stock indexes closed yesterday with mixed results. The Nasdaq led the gains with a 0.9% increase, followed by the S&P 500, which rose 0.4%. The Dow Jones Industrial Average, meanwhile, finished virtually unchanged. With these movements, the indexes have accumulated year-to-date gains of 10.2%, 12.3%, and 9.2%, respectively.

Regarding bond yields, the US Treasury curve compressed slightly yesterday. The 1-year Treasury note moved from 4.11% to 4.01%, while the 3-year note fell from 4.32% to 4.24%. Meanwhile, the 10-year note declined from 4.62% to 4.59%.

As for the corporate earnings season, yesterday ASML, Johnson & Johnson, Morgan Stanley, BlackRock, Progressive, and Bank of New York Mellon reported quarterly results, all exceeding analysts' expectations for earnings per share and revenue. Today, before the market opened, UnitedHealth, GE Aerospace, and Abbott Laboratories also released their reports, surpassing analysts' consensus estimates for both earnings and revenue. Netflix's results are still pending, and the company will announce them after the close of trading today.

Finally, regarding commodities, movements were generally positive. Gold advanced 1.3% and closed at USD 4,052.8 per ounce, while soybeans rose 0.4% to USD 443.5 per ton. Oil also advanced, with WTI rising 1.5% and Brent 1.7%, reaching prices of USD 79.3 and USD 84.7 per barrel, respectively.

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