The Fed Holds Interest Rates, Now All Eyes are on Powell's Testimony Amid Political Pressure

WASHINGTON – As per market expectations, the U.S. Federal Reserve (The Fed) decided to keep its benchmark interest rate unchanged in the June meeting that concluded early Wednesday. Now, all attention turns to the Fed Chair, Jerome Powell, who is preparing to face increasing political pressure while testifying before the U.S. Congress (Capitol Hill).

Although economic data shows some signs of cooling, The Fed maintains its cautious stance, stating the need for more evidence that inflation is consistently moving toward the 2% target before considering cutting interest rates.

However, this data-driven stance will be tested on the political stage. Powell is scheduled to face sharp questions from lawmakers this week. The Trump administration has openly called for interest rate cuts to spur growth, creating significant political pressure on the central bank's independence.

Analysts expect Powell to remain steadfast in his position, emphasizing that The Fed's decisions are purely based on economic data. However, the market will scrutinize every word and intonation from Powell for any small signals regarding the timing of future interest rate cuts. This testimony will be a crucial test for Powell's leadership and the direction of U.S. monetary policy amidst the intersection of economic data and political interests.#thefed $BTC