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Federal Reserve Chair Jerome Powell spoke on Wednesday at Stanford University, claiming that inflation is still on a "bumpy path" to the Fed's inflation target goal of 2%. He added that he believes that the Fed will mostly likely cut interest rates sometime this year. In response, US equities (^GSPC, ^DJI, ^IXIC) have begun to fall in afternoon trading.

BNP Paribas Senior US Economist Yelena Shulyatyeva joins Market Domination to discuss Powell's speech, the likelihood of rate cuts, and the performance of the overall market.

When asked if she agrees with Powell's statements, Shulyatyeva weighs in on prevailing inflation themes like commodity prices: "Sure. Commodities is a risk factor here. I would say so that could percolate into core inflation, so whether it is core goods or even core services which include like hotel prices, travel, airfares, and such. But it will probably take a little bit of time and... these things are very easily identifiable. So commodity prices can go up and down, and the Fed is very well aware of that. That's why they track core inflation after all. So I think we could see a little bit of an impact on core prices, but they are easily identifiable."

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Editor's note: This article was written by Nicholas Jacobino