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The Fed left interest rates unchanged last week, in line with expectations. Fed Chairman Jerome Powell said in a statement that he would act cautiously in reducing interest rates, citing concerns about tariffs.
While the developments between the US and Iran following the interest rate decision negatively affected Bitcoin (BTC) and altcoins, the signing of a ceasefire between Iran and Israel brought the markets back to green.
While the Iran-Israel ceasefire remained on the agenda, all eyes were on FED Chairman Jerome Powell's speech.
What Time Is FED Chairman Jerome Powell's Speech?
At this point, FED Chairman Jerome Powell will present the “Six-Month Monetary Policy Report” to Congress today and tomorrow.
The FED Chairman will make a presentation to the House Financial Services Committee today at 17:00 Turkish time and answer questions from Committee members.
While all the attention is on Powell's speech, the text of the speech was released in advance.
According to the published text, the Fed chairman is preparing to tell Congress that tariffs may cause temporary price increases but that the Fed is focused on preventing them from turning into sustained inflation.
While Powell did not signal in his speech that interest rates would be cut in July, he reiterated that it was necessary to be patient and wait for more inflation and labor force data before making any cuts.
At this point, Powell reiterated that the FED is focusing on jobs and inflation in an environment of uncertainty, and said that the economy is stable, unemployment is low, and inflation is falling but remains slightly above the 2% target.
“Despite increasing uncertainty, the economy remains robust.
The unemployment rate remains low and the labor market is at or near maximum employment. Inflation has fallen significantly but remains slightly above our long-term target of 2%.
Increased tariff uncertainty is likely to increase inflation and negatively impact economic activity.
The Fed's obligation is to keep inflation expectations intact so that a one-time increase in the price level does not turn into a persistent inflation problem.
“I would not touch interest rates until there is more clarity on trade.”
Donald Trump Targets Powell Again!
While markets await Powell's speech, US President Donald Trump targeted Powell again.
Trump harshly criticized Powell's interest rate policies, while arguing that the economy was in good shape and stressed that the interest rate cuts were necessary.
Stating that he expects Congress to take action on this issue, Trump argued that the interest rate should be at least 2 to 3 points lower. At this point, Trump stated that the US would save $800 billion per year in this way.
Trump repeats stupid remark about Powell:
“Powell will explain today, among other things, why they are not cutting rates.
There were 10 reductions in Europe, but we have zero. There is no inflation, the economy is fine. We should be at least two to three points lower.
“I hope Congress will really take action against this very stupid and stubborn individual. We will pay the price for his incompetence for years to come.”
Fed members Michelle Bowman and Christopher Waller also said they support a rate cut in July.
*This is not investment advice.