Fed Chair Jerome Powell's Capitol Hill testimony comes amid pressure from Trump and other politicians to cut interest rates. Learn more.

After the Fed left interest rates unchanged in June, Jerome Powell's Capitol Hill testimony is the most anticipated event among crypto investors.

Donald Trump's trade tariffs and tensions in the Middle East have affected the crypto market. Even Bitcoin fell to a multi-month low of $98.5k, and the rest of the altcoins faded. Let’s discuss what to expect from Powell’s testimony.

Jerome Powell’s Capitol Hill Testimony Interest Rate Cut Concerns

The Fed Chair will testify before Congress (House) today, June 24, and before the Senate on June 25, to present the Fed’s semi-annual monetary policy report.

Jerome Powell's Capitol Hill testimony comes amid increasing pressure from politicians and Fed insiders to cut interest rates.

US President Donald Trump has called him out of late and even threatened to fire him after the Fed's decision to keep interest rates at 4.25-4.5 percent.

Experts believe this is a ‘wait and see’ strategy. The Fed believes there is too much uncertainty surrounding Trump's tariffs on the U.S. economy.

Now, however, even Fed governors Michelle Bowman and Christopher Waller have called for a rate cut as early as July.

Also, investors expect a July rate cut with 23% odds on CME FedWatch data. The odds for September are even higher at 82%.

What to expect from Jerome Powell's Capitol Hill testimony?

The Fed Chair is under intense pressure from all sides, namely Donald Trump from the Republicans, Elizabeth Warren from the Democrats, and netizens.

The reasons for the interest rate delay and their impact are expected to be prominently discussed at this meeting.

Also, more clarity is needed on the number of rate cuts that will come with this meeting.

The Fed expects only one rate cut in 2025, according to CME's outlook, but investors are hoping for more. If Powell speaks in his decision, the crypto market could witness a rally. However, if he is convinced that the market is wrong, the dollar could rise.

Also, Powell is expected to address the US air strike on Iran, as it could affect inflation and oil prices. Oil and gold prices have been seen rising as the Israel-Iran conflict escalates.

More importantly, if Harms is shut down, it could increase fuel prices. As a result, US inflation could accelerate again.

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