Jerome Powell Maintains Position On Fed Rate Cuts In Capitol Hill Testimony

Fed Chair Jerome Powell is set to testify at Congress today, where the Fed Chair plans to reiterate the Committee’s wait-and-see approach to Fed rate cuts. The Fed Chair is also going to allude to Trump tariffs and warn about how they put the economy at risk of rising inflation.

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Jerome Powell Reiterates No Hurry For A Fed Rate Cut

The Fed Chair’s proposed testimony at Congress shows that the Fed Chair plans to continue to wait for clarity on inflationary pressures, like the Trump tariffs, before proceeding with a rate cut Jerome Powell stated in the prepared speech that policy changes continue to evolve and their effects on the economy remain uncertain.

The Fed Chair further remarked that the effects of the Trump tariffs will depend, among other things, on their ultimate level. “Expectations of that level, and thus of the related economic effects, reached a peak in April and have since declined. Even so, increases in tariffs this year are likely to push up prices and weigh on economic activity.” Powell added in the speech.

As CoinGape reported, Jerome Powell’s Capitol Hill testimony holds today, where he will deliver this speech before the House Financial Services Committee. This testimony comes just six days after the Fed decided to leave interest rates at the benchmark 4.25% to 4.5%.

Fed Governor Christopher Waller had said that a Fed rate cut could come as early as July. However, Powell’s testimony shows that this is unlikely even as traders continue to price in two rate cuts in the second half of this year.

Jerome Powell declared that they will continue to determine the appropriate stance of monetary policy based on the incoming data, the evolving outlook, and the balance of risks. Based on the speech, he noted the Trump tariffs could play out either way, which is why they need to simply wait and see what happens.

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