• Jerome Powell emphasizes the need for data before considering interest rate cuts.
• Uncertainty surrounding Trump’s tariffs could impact inflation and economic activity.
• The Federal Reserve remains steady at 4.25% to 4.5% interest rate range.
• Investors adjusted expectations for possible rate cuts in September, rather than July.
• Powell's position contrasts sharply with President Trump's push for immediate cuts.

Federal Reserve Chair Jerome Powell reiterated that the central bank will not rush to cut interest rates, stressing the need to assess the economic impact of President Donald Trump's tariffs. "For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," Powell stated during his testimony before the House Financial Services Committee. He noted that tariffs could "push up prices and weigh on economic activity," but their inflationary effects could be either short-lived or persistent, depending on forthcoming data, according to Reuters, CBS News, Al Jazeera, NPR, and India Times.

Despite calls from Trump for immediate rate cuts to stimulate the economy, Powell maintains that current data does not warrant such actions. Since December, the Fed has kept rates steady in a range of 4.25% to 4.5%. Powell referenced ambiguity about the potential impacts of tariffs and indicated that any inflation effects would be closely monitored over the coming months. He remarked that higher inflation rates are anticipated but emphasized the need for solid data before making changes, as noted by Reuters, CBS News, and NPR.

Following Powell's remarks, investors revised expectations regarding future rate cuts, now leaning towards a more likely reduction in September rather than the upcoming July meeting. As such, he reassured that the Fed will continue to monitor the evolving situation concerning trade policies and their implications on the economy closely, in line with positions stated by CBS News, Al Jazeera, and India Times.

Powell's testimony defended the Fed's current stance against pressure from the Trump administration. He noted that the Fed prioritizes maintaining stable prices and observing the effects of tariffs carefully, critiquing ongoing political pressures for potentially complicating economic forecasting. "Our job is keeping inflation under control," he clarified, reflecting on the independent nature of the Federal Reserve's mandate, as indicated by CBS News and NPR.