Chair of the U.S. Federal Reserve Jerome Powell addressed the House Financial Services Committee, maintaining a cautious stance on monetary policy amid criticism from President Donald Trump and differing opinions within the Fed’s leadership.
This is reported by Business • Media
Powell’s Position and Market Reaction
In his speech, Powell reiterated key points made earlier during the press conference following the Fed’s meeting on June 18. He presented current economic indicators and emphasized that there are no grounds for easing policy at this time. The Fed Chair stressed the need to wait for additional economic data before considering any changes to 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 it is currently difficult to assess the impact of the Trump administration’s tariff policy on the U.S. economy, as it depends on final decisions regarding tariff levels.
Division in Fed Leadership and Trump’s Criticism
Amid Powell’s cautious position, a division has emerged within the Fed’s leadership. Fed Vice Chair Michelle Bowman stated during a conference in Prague that, assuming inflation remains subdued, she would support a rate cut as early as July 2025. Another board member, Christopher Waller, shares a similar view and does not rule out a rate cut in the near future.
U.S. President Donald Trump, prior to Powell’s appearance, made a sharp statement on the social media platform Truth Social, once again criticizing the Fed Chair:
“[…] I hope Congress can deal with this foolish and stubborn man. His incompetence will cost us dearly.”
Following Trump’s criticism, as well as statements from Waller and Bowman, the likelihood of a rate cut, according to CME Global, increased to 16.5%. The next Fed meeting regarding the rate is scheduled for July 29-30, 2025.
Powell is expected to speak again before the Banking Committee on June 25. Additionally, new data on the Consumer Price Index (CPI) and unemployment rate in the U.S. will be released before the next Fed meeting, which could be decisive for the regulator’s future policy.