Jerome Powell, chairman of the US Reserve, attested during a hearing from the Financial Service Committee of the House Financial Services on “the half-year monetary political report of the Federal Reserve” on the Capitol Hill in Washington, DC, on June 24, 2025.
Saul Loeb | AFP | Getty pictures
The chairman of the Federal Reserve, Jerome Powell, emphasized the commitment of the central bank on Tuesday to keep inflation in chess.
In comments that are to be delivered to two congress committees this week, Powell described economic growth as strong and the labor market in order to have full employment.
However, he noted that inflation is still above the 2% goal of the Fed, with the effects that the tariffs of President Donald Trump will still unclear.
“Political changes continue to develop and their effects on the economy remain uncertain,” said Powell. “The effects of tariffs depend, among other things, on their final level.”
Powell repeated what has become familiar with the Fed boss and said that the political decision -makers were “well positioned to learn more about the likely course of the economic course before they are considering adjustments to our political attitude”.
The cautious tones could continue to antagonize Trump, who has increased his many years of criticism of Powell. Trump hopes in his most recent broad side, which was published on the social platform of the President in the early Tuesday, “the congress really works this very stupid, stubborn person.”
Powell presented his comments together with the Fed's Fed money report on Tuesday to the Fed House Financial Services Committee of the Fed and will then be released a day later in front of the Senate banking committee.
House members have repeatedly asked Powell about the appearance of the criteria for a cut, and he said that data would last in the summer to provide evidence that tariffs do not provide any longer inflation.
“We just try to be careful and careful,” he said. “We really think that this is the best thing we can do for the people we serve.”
When asked whether Powell had the pressure of the White House of the Trump of the White House from the White House, Powell repeated earlier claims that politics plays no role in the Fed.
“They have no effects,” he said of the president's attacks that have become more and more personal. “We do our jobs.”
Seen inflation
Most of the language was the language of the kettle plate, with which Powell described the economy that he said, “remains solid”, a word with which he also characterizes the labor market.
In the case of inflation, however, he said that the preferred measure of the FED is probably increased up to 2.3% in May, whereby the nuclear measure without food and energy is excluded up to 2.6%. The respective readings for April were 2.1% and 2.5%.
Historically, the tariffs have led to unique price increases and were only occasionally responsible for long -term inflation pressure. Powell said that he and his colleagues from the Open Market Committee from the federal market will weigh this balance and have no hurry to adapt politics until they have more data to see how tariffs work this time. The FOMC is the interest rate of the central bank.
“The commitment of the FOMC is to keep the expectations of long -term inflation well anchored and prevent a one -time increase in price levels to become a continuing inflation problem,” said Powell. He added that the Fed would try to reconcile its double goals of full employment and the low inflation, “consider that we cannot achieve the long periods of strong labor market conditions that benefit all Americans” without price stability.
The FOMC unanimously voted to keep the tariffs stable last week.
However, an update of future expectations of the individual members – the “Dot plot” grid – showed a separation between the members. Nine of the 19 officials preferred either zero or a cut this year, while eight two cuts and two more expected three. The action takes place anonymously, so that there is no way to know the prospects of individual members.
In the past few days, two important Fomc voters, governors Michelle Bowman and Christopher Waller, stated that they would prefer a reduction in July as long as the inflation data are still at bay. The consumer price index rose only by 0.1% in May and repeated other indicators that showed steamed prices and the tariffs from the tariffs.
The pricing for Futures Market shows only a 23% probability of a reduction at the meeting from July 29th to 30th, whereby, according to the Fedwatch measuring device of the CME group, a much higher probability for the next reduction in September in September.