Welcome to Seeking Alpha's Wall Street Lunch, our afternoon update on today's market action news and analysis.

Good afternoon, today is Tuesday July 9thth and I'm your host Kim Khan. Our top story so far.

Federal Reserve Chairman Jay Powell continued to try and walk the monetary policy tightrope

as he testified before the Senate Banking Committee.

In day one of what used to be Humphrey Hawkins' testimony, Powell reiterated that rate decisions

are being made meeting by meeting.

He noted progress towards the Fed's 2% inflation goal, but said more data is needed to confirm

it's on a sustainable path. He also warned about weakening the economy too much.

In light of the progress made both in lowering inflation and in cooling the labor market over the past two years,

elevated inflation is not the only risk we face.

Reducing policy restraint too late or too little could unduly weaken economic activity

and employment.

In considering adjustments to the target range of the federal funds rate, the committee will continue

its practice of carefully assessing incoming data and their implications for the evolving outlook, the balance of risks, and the appropriate path of monetary policy,

Powell said.

The markets were noncommittal, although Bonds seemed to focus a little more on the hawkish comments.

The 10-year Treasury yield rose back above 4.3%. In equities, the major averages were mixed around the

unchanged line. As far as the September FOMC meeting is concerned, odds of a quarter point cut remained around 70%.

Powell will be back for another Q&A before the House Financial Services Committee on Wednesday.

In addition, the Fed is reportedly weighing a rule change

that could reduce the amount of money the U.S.'s eight largest banks are required to set aside

to bolster their reserves to weather a major downturn.

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