The fluctuations tonight may occur after Powell's 'verbal battle' on Capitol Hill at 10 PM.

Powell is expected to cautiously follow the message he conveyed last week, when he stated that the Federal Reserve is 'well-positioned to wait and learn more about the potential direction of the economy' before considering any interest rate changes.

'We want to obtain more data, and in the meantime, we can do this because the economy remains in a robust state,' Powell told reporters last week. 'Ultimately, the costs of tariffs must be paid, part of which will fall on the final consumer.'

So far, the tariffs imposed by the Trump administration have not resulted in the price increases and rising unemployment rates that policymakers warned about. In fact, economists expect this week's data to show that the Federal Reserve's preferred core inflation measure rose only 0.1% in May, marking the third consecutive month of such an increase, which would be the mildest three-month inflation growth since 2020.

Two Federal Reserve governors, Waller and Bowman, have both indicated that the impact of tariffs on prices may be temporary, and they may support a rate cut in July.