Jerome Powell spoke before the Financial Services Committee in Congress.
Despite the opinions of his colleagues and Trump's criticism, he did not announce a rate cut in July.
Earlier, the president called him stupid and stated that his incompetence would cost the country dearly.
The Chairman of the U.S. Federal Reserve (\u003ct-31/\u003e) Jerome Powell spoke before the House Financial Services Committee. His position was restrained despite sharp criticism from U.S. President Donald Trump.
During his speech, Powell generally reiterated the same theses that were presented at the press conference following the interest rate decision announcement on June 18. The head of the Federal Reserve presented key economic indicators and pointed out that it is too early to talk about easing the policy.
"At this point, we have every reason to wait and learn more about the likely course of the economy before considering any adjustments to our policy stance," he emphasized.
Powell also noted that predicting the real impact of the Trump administration's tariff policy on the U.S. economy is difficult. This will depend, according to him, on their final level.
It is noteworthy that Powell continued to maintain a cautious stance against the backdrop of two factors — criticism of his actions from Trump and a rift in the Council.
In particular, Fed Vice Chair Michelle Bowman stated during a conference in Prague that she is open to easing the regulator's policy. If the inflation level remains subdued, she will advocate for a rate cut as early as July 2025.
Her colleague and another Council member, Christopher Waller, shares the same opinion.
As for Trump, the day before Powell's speech in Congress, he published the following statement on his Truth Social page:
"[…] I hope that Congress can deal with this stupid and stubborn man. His incompetence will cost us dearly."
Against the backdrop of criticism from Trump, statements from Waller and Bowman, the likelihood of a rate cut, according to the CME Global exchange, rose to 16.5%. The next interest rate meeting will take place on July 29-30, 2025.
Powell will also speak before the Banking Committee on Wednesday, June 25. In addition, another report on the Consumer Price Index (CPI) and unemployment in the U.S. is expected to be published before the interest rate meeting, which may influence the regulator's decision.
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