Federal Reserve Chairman Jerome Powell is set to address Congress twice this week, defending the central bank’s decision to maintain the current benchmark interest rate range of 4.25% to 4.5%.
The Fed has signaled its intention to hold rates steady at this level until at least September, prioritizing caution in the face of persistent geopolitical tensions and their potential impact on global financial markets.
This stance comes despite public pressure from President Donald Trump, who has repeatedly urged the Fed to implement significant rate cuts to stimulate faster economic growth.
Chairman Powell, however, remains firm in the Fed’s commitment to a data-driven approach to monetary policy. He is expected to emphasize the need for patience and further evidence of sustained inflation moderation before considering any policy shift.
Senior Fed officials, including James Bullard and Michelle Bowman, have publicly supported this outlook, reinforcing the message of policy continuity and vigilance against economic uncertainty.
The ongoing divergence between the Fed’s cautious stance and the White House’s push for stimulus creates a significant backdrop for financial markets, including cryptocurrency valuations sensitive to interest rate expectations and broader economic sentiment.