Powell Testifies Amidst Economic Uncertainty and Inflation Concerns
1min read Federal Reserve Chair Jerome Powell is set to deliver his semiannual monetary policy testimony today, providing insights into the central bank's stance on inflation, economic growth, and interest rates. The testimony, scheduled for 23:00 Beijing time, will be delivered before the Senate Committee on Banking, Housing, and Urban Affairs.
The testimony comes at a time of significant uncertainty for the U.S. economy, with President Trump's proposals on trade, taxation, immigration, and regulation introducing potential headwinds. The Fed has been unable to achieve its 2% inflation target since 2021, and lawmakers are considering raising this target. Inflation remains a critical issue for Americans and a concern for both political parties, making the hearing "highly fraught," according to Sarah Binder, a Senior Fellow at the Brookings Institution.
Powell's testimony will likely address the Fed's efforts to maintain a healthy labor market and control inflation. The central bank has faced pressure from Republicans, leading to changes in its leadership. Vice Chair for Supervision Randal Quarles stepped down last month, paving the way for Trump to install his own regulators.
In recent weeks, Trump has criticized the Fed's decision to hold rates steady but later indicated he might not interfere. Treasury Secretary Janet Yellen mentioned Powell in an interview, expressing confidence in his leadership. The Fed tends not to engage in partisan debates but recognizes the importance of public support for its policies.
