Fed Chair Powell will be on the hot seat this week. Powell will testify before Congress to give the lawmakers an update on the central bank’s views on inflation and the economy.
Powell is scheduled to testify before the House Financial Services Committee on Tuesday and the Senate Banking Committee on Wednesday. Several other Fed officials are also scheduled to deliver remarks during the week.
On Tuesday, June 24, 2025, at 10:00 a.m. EST, the Committee on Financial Services will hold a hearing in Room 2128 of the Rayburn House Office Building titled “The Federal Reserve’s Semi-Annual Monetary Policy Report”, where the witness will be Jerome H. Powell, Chair, Board of Governors of the Federal Reserve System.
The Powell’s testimony can be watched live on the website of financialservices.house.gov
Federal Reserve Chair Jerome Powell is expected to stress to legislators that the central bank is not in a rush to decrease interest rates while policymakers await more information on the economic impact of President Donald Trump’s tariffs.
“The effects of tariffs will depend, among other things, on their ultimate level,” Powell said Tuesday in remarks prepared for delivery to Congress. “For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”
The pressure on Powell to start cutting rates is increasing. Since December, FOMC has kept the rate unchanged while Trump has called for a 100bps rate cut and has criticized him for being behind the curve several times.
President Donald Trump has once again attacked Jerome Powell, the chair of the Federal Reserve, and called for a three-point reduction in the benchmark interest rate.
On Truth Social on Tuesday morning, Trump wrote – “Too Late” Jerome Powell, of the Fed, will be in Congress today in order to explain, among other things, why he is refusing to lower the Rate. Europe has had 10 cuts, we have had ZERO. No inflation, great economy – We should be at least two to three points lower. Would save the USA 800 Billion Dollars Per Year, plus. What a difference this would make. If things later change to the negative, increase the Rate. I hope Congress really works this very dumb, hardheaded person, over. We will be paying for his incompetence for many years to come. THE BOARD SHOULD ACTIVATE. MAKE AMERICA GREAT AGAIN!
Political influence seems to be creeping into the US Federal Reserve. Two key Fed officials have recently talked about a rate cut as early as July. The next FOMC meeting is on July 29-30.
During a lecture in Prague, Fed Governor Michelle Bowman stated that if inflation data remains consistent, she could see a case for beginning to loosen policy next month. Governor Christopher Waller also echoed similar views and expects rate cuts could begin in July.
Powell’s testimony hearings follow the Fed’s meeting last week, during which policymakers decided to keep interest rates at their present levels. By December, central bankers anticipate a total of 50 basis points of easing, including two quarter-point rate cuts.
The Fed’s most recent economic forecasts showed lower growth estimates and higher inflation forecasts. When economic growth slows and price pressures continue above target levels, this combination creates concerns about stagflation.
According to Fed officials, the inflation outlook is clouded by tariff uncertainty and unpredictable price pressures are a result of Trump administration’s trade policy.
Many anticipate the Fed will begin decreasing interest rates, although market pricing favors September rather than July as the initial step. At last week’s FOMC meeting, members were divided on the timing and scope of cuts.
On Friday, the Fed’s favored gauge, the May PCE inflation data, will be released, indicating if price pressures continue to drop toward the 2% objective.
Meanwhile, there may be some market-moving moments throughout the hearings on Tuesday and Wednesday, particularly if Powell is grilled by Trump’s political allies. Some lawmakers may agree with Trump’s criticism of Powell over the central bank’s unwillingness to cut interest rates.