Key Facts
• June 24, 2025: Fed Chair Powell testified before the House Financial Services Committee.
• Powell emphasized the need to assess tariff impacts before considering rate cuts.
• Tariff hikes in 2024 may temporarily raise prices and pressure economic activity.
• Inflation remains below pandemic peaks; unemployment rates are low.
• Powell stated the economy remains “resilient” despite trade policy uncertainties.
• Financial markets adjusted expectations for rate cuts to September and later in 2025.
Summary
Federal Reserve Chair Jerome Powell, in his June 24, 2025 testimony to the House Financial Services Committee, reaffirmed the Fed’s cautious stance on interest rate cuts. Powell highlighted the need to evaluate the economic impact of 2024 tariff increases, which could temporarily raise prices and suppress economic activity. He noted that inflation remains below pandemic-era peaks, and unemployment rates are low, signaling a resilient economy. However, he acknowledged ongoing uncertainties surrounding trade policy changes under the Trump administration. Following his remarks, financial markets adjusted their expectations, anticipating rate cuts in September 2025 and possibly one more within the year.
