Futures traders maintained the amount of easing they expect from the Federal Reserve this year after the release of written Congressional testimony from central bank Chairman Jerome Powell.

January 2021 fed funds futures imply a rate of 1.215% at the end of 2020, in line with its level from just before the release of his written remarks. Assuming an effective fed funds rate of around 1.58%, the market is pricing in around 36.5 basis points of further easing for this year. It is fully pricing a quarter-point cut by around September.

Federal Reserve Chairman Jerome Powell said the U.S. central bank is keeping a close eye on fallout from the deadly coronavirus outbreak in China, singling it out among risks threatening the U.S. and world economy.

The Bloomberg dollar index was close to its highs for the day and Treasuries maintained their declines for the session following the remarks.

This story was provided by Bloomberg News.