"Our mission is not to cater to politics," Powell emphasizes that suppressing inflation is the primary goal of The Federal Reserve (FED).

Even if President Trump has difficulty again, Jerome Powell, chairman of The Federal Reserve (FED), emphasized at the congressional hearing on June 25th that suppressing inflation and maintaining price stability are the core missions that The Federal Reserve (FED) cannot compromise on. He explicitly stated that policy adjustments will be suspended until the impact of tariffs on prices is fully understood, demonstrating a cautious and independent decision-making stance.

The economy is stable but inflation pressures have not eased, the Federal Reserve (FED) chooses to stand pat

Powell told the House Financial Services Committee that the U.S. economy is growing strongly, the labor market is close to full employment, and the overall situation is good. However, he also admitted that the current inflation level is still above the 2% target, The Federal Reserve (FED) will not cut interest rates rashly. He expects core inflation to rise to 2.6% in May, higher than April's 2.5%, further strengthening the Fed's wait-and-see attitude.

Powell said that the tariff effects of concern to the outside world are still full of uncertainties, emphasizing that "its impact will depend on the degree of final tariff implementation." Since tariffs may bring short-term price shocks, but historically, most of them have not caused long-term inflation, The Federal Reserve (FED) will continue to evaluate its potential risks.

The Federal Reserve (FED) sticks to its dual mandate of linking employment and price stability

Powell reiterated The Federal Reserve (FED)'s dual mandate to promote full employment and stable prices, stating: 'Without a stable price environment, we cannot achieve lasting labor market prosperity.' He stated that the Federal Open Market Committee (FOMC) will be committed to maintaining stable inflation expectations and avoiding a one-time price increase evolving into a long-term inflation problem.

Despite Trump's renewed criticism of Powell as a "stubborn and foolish person" through the social platform Truth Social, calling on Congress to "deal with him properly," Powell remained calm during the hearing. He said, "Political pressure has not affected our decision-making. We are just doing our job."

Internal disagreements are emerging, and 'bitmap' reveals a divisive trend

Although The Federal Reserve (FED) unanimously decided to stand pat last week, the 'dot plot' of policy prospects shows a divergence of views among officials: among the 19 decision-makers, 9 expect to maintain or cut rates only once this year, while 10 others expect two or more cuts. This anonymous forecast highlights internal disagreements within The Federal Reserve (FED) over inflation trends and policy direction.

Rate cut in July? The market is not buying it.

Although the two directors of The Federal Reserve (FED), Michelle Bowman and Christopher Waller, recently stated that they support a rate cut in July if inflation remains under control, market sentiment is more conservative. According to the CME FedWatch tool, investors currently predict a rate cut probability of only 23% for the meeting on July 29-30, while the probability of a rate cut in September is higher.

Powell's remarks this time send a clear signal: The Federal Reserve (FED) will not easily adjust its policy before the data is clear, nor will it deviate from its responsibilities due to political interference. While the tariff effects have not yet been manifested, the market needs to patiently wait for more inflation data to be released, and The Federal Reserve (FED) continues to maintain its policy independence in the economic and political confrontation.

The article "Our mission is not to cater to politics" emphasized by Powell that suppressing inflation is the primary goal of The Federal Reserve (FED) first appeared on ChainNews ABMedia.