US Fed Chair Jerome Powell to defend current monetary policy before Congress

As reported by Bloomberg, Federal Reserve Chair Jerome Powell is set to testify twice this week before US lawmakers. He’s expected to defend the central bank’s decision to hold interest rates steady at least until September even as President Donald Trump keeps pushing for cuts.

According to the news agency, Powell will appear before the House Financial Services Committee on Tuesday and the Senate Banking Committee on Wednesday. His testimony comes amid the recent escalation of US-Iran tensions that have raised concerns about oil price spikes and potential risks to the global economy.

Powell is expected to reaffirm the Fed's cautious approach to monetary policy. This wait-and-see stance allows policymakers to carefully assess emerging economic trends. The central bank chief has indicated that with no immediate risks on the horizon, officials can afford to avoid abrupt policy shifts. 

Meanwhile, the inflationary pressure from Trump's duties has been weaker than expected. Fed officials Christopher Waller and Michelle Bowman believe the tariffs' impact on prices will be short-lived. This could pave the way for an interest rate cut as early as July.