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The chairman of the US Federal Reserve, Jerome Powell, testifies during the hearing of the House of Representatives Committee on the topic “A half-free report on the Federal Reserve Policy” on the Capitol Hill in Washington on June 24, 2025.
Saul Lob | AFP | Gets the image
Chairman of the Federal Reserve System Jerom Powell On Tuesday, the Central Bank’s commitment to inflation content emphasized, saying that it expects the politicians to remain on the holdings until they better handle the tariffs for the impact on prices.
U comments to be Delivered to two Committees Congress This week, Powell described economic growth as a strong and the labor market is around full employment.
However, he noted that inflation is still above 2% of the Fed target, and the influence on the president Donald TrumpThe tariffs will still have unclear.
“Changes in politics continue to develop, and their influence on the economy remains uncertain,” Powell said. “The influence of tariffs, among other things, will depend on their final level.”
Repeating what became a familiar language from the Fed’s chief, Powell said that politicians “are waiting well to learn more about the likely economy before considering any adjustments in our political position.”
Careful tones could even more confronting Trump having shocked his long -standing criticism from Powell. In the last broad side, Posted at the beginning of Tuesday On the social platform of President Trump, Trump said he hoped that “Congress really works with this very silent, tough man.”
Powell presented his comments, as well as a report on the Fed Monetary Policy, first to the Financial Services Committee on Tuesday, then a day later before the Bank Senate Committee.
The members of the house repeatedly asked Powell through the appearance of the criteria, and he consistently said he would accept data through the summer to provide evidence that tariffs do not provide long -term inflation growth.
“We are just trying to be careful and careful,” he said. “We really think it’s the best we can do for the people we serve.”
Asked if Trump’s White House was pressured, Powell repeated the past statements that politics has no role in the Fed.
“They have no consequences,” he said about the president’s attacks, which are increasingly personal. “We do our job.”
Inflation has noticed drifting
Most of the speech was the language of the boiler, which Powell used to describe the economy, which, he said, “remains firm”, the word he also used to characterize the labor market.
However, when inflation, he stated that in May the preferred measure of the Fed would probably move to 2.3%, with the main measure excluding food and energy to 2.6%. The corresponding testimony in April was 2.1% and 2.5%.
Tariffs have historically led to a one -time price increase and only sometimes is responsible for long -term inflation pressure. Powell said he and his open market federal colleagues would weigh this balance and feel slowly adjusting the policy until they have more data to view how tariffs work this time. FOMC-is the raise of the Central Bank speed.
“The FOMC duty is to maintain long-term inflation expectations well secured and prevent a one-time increase in prices from a permanent inflation problem,” Powell said. He added that the Fed would seek to balance its dual goals of full employment and low inflation, “given that without the stability of prices, we cannot reach a long period of strong working conditions that benefit all Americans.”
Fomc Last week voted unanimously To keep the bids stable.
However, the update to future expectations of individual members – the “point section” network – showed a split among members. Nine out of 19 officials advocated zero, or one cut this year, and eight saw two cuts and two more expected. The plot is made anonymously, so there is no way to learn about the worldview of individual members.
Over the past few days, however, two key voters FOMC, Governors Michel Bowman and Christopher Waller said that in July they would prefer reduction while inflation data remained in control. Consumer prices index increased by only 0.1% in May, echoing with other indicators showing muted pressure prices so far from tariffs.
Futures market prices show only 23% probability at the meeting on July 29-30, with a much higher likelihood of the next decline that occurred in September, CME Group reports Fedwatch caliber.
