Powell Testimony and Jobs Report Provide Key Test on Inflation Outlook
• Powell's testimony and February jobs report pose test for stock rally and rate-cut forecasts
• Jobs data has more potential to move markets if gains exceed expectations, signaling persistent inflation
• Powell expected to emphasize need for confidence inflation falling before rate cuts, avoiding bullish signals
• Rates market would react to testimony or jobs data, impacting Treasurys and risk assets
• Key worry is services inflation still too high from Fed's view, needing more evidence disinflation sustainable