On June 24, Fed Chair Jerome Powell will have two opportunities this week to explain to members of Congress why he and most of his colleagues are determined to keep interest rates unchanged until September, ignoring Trump's persistent calls for lower borrowing costs. The Fed chair will testify before the House Financial Services Committee at 10 p.m. Beijing time on Tuesday and before the Senate Banking Committee at the same time on Wednesday. Less than a week ago, Fed officials agreed to keep interest rates unchanged for the fourth consecutive meeting, and his appearance comes after the United States recently attacked Iran, fueling concerns about soaring oil prices and risks to the global economy. In a post, Trump said he wanted Congress to "give a good beat" to Powell and advocated that U.S. interest rates should be "at least two to three percentage points lower." Last week, the Fed kept its benchmark federal funds rate in a range of 4.25%-4.5%. Powell is expected to cautiously follow the message he conveyed last week, when he said the Fed was "well-positioned to wait and learn more about where the economy might go" before considering any interest rate changes. The tariffs imposed by the Trump administration have yet to deliver the price increases and rising unemployment that policymakers have warned of. Both Fed governors, Waller and Bowman, have said that the impact of tariffs on prices may be short-lived, and that they may support a rate cut in July.
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Tonight at 10 PM, Powell will "debate" on Capitol Hill, and Trump once hoped that "Congress" would reprimand Powell.
On June 24, Fed Chair Jerome Powell will have two opportunities this week to explain to members of Congress why he and most of his colleagues are determined to keep interest rates unchanged until September, ignoring Trump's persistent calls for lower borrowing costs. The Fed chair will testify before the House Financial Services Committee at 10 p.m. Beijing time on Tuesday and before the Senate Banking Committee at the same time on Wednesday. Less than a week ago, Fed officials agreed to keep interest rates unchanged for the fourth consecutive meeting, and his appearance comes after the United States recently attacked Iran, fueling concerns about soaring oil prices and risks to the global economy. In a post, Trump said he wanted Congress to "give a good beat" to Powell and advocated that U.S. interest rates should be "at least two to three percentage points lower." Last week, the Fed kept its benchmark federal funds rate in a range of 4.25%-4.5%. Powell is expected to cautiously follow the message he conveyed last week, when he said the Fed was "well-positioned to wait and learn more about where the economy might go" before considering any interest rate changes. The tariffs imposed by the Trump administration have yet to deliver the price increases and rising unemployment that policymakers have warned of. Both Fed governors, Waller and Bowman, have said that the impact of tariffs on prices may be short-lived, and that they may support a rate cut in July.