The Fed left interest rates that had not changed in line with expectations last week. In a statement, Chairman Jerome Powell said he will act cautiously in cutting interest rates, citing concerns about tariffs.
Following the interest rate decision, development between the US and Iran has had a negative impact on Bitcoin (BTC) and altcoin, while the signing of a ceasefire between Iran and Israel has brought the market back to green.
The Iran-Israel ceasefire remained on the agenda, but all eyes were in the speech of Chairman Jerome Powell.
What time is Chairman Jerome Powell’s speech?
At this point, Federal Reserve Chairman Jerome Powell will present his “Six Month Monetary Policy Report” to Congress today and tomorrow.
The Federal Reserve chair will make a presentation today to the House Financial Services Committee at 5pm Turkey time, answering questions from committee members.
The speech text was pre-released while all attention was in Powell’s speech.
According to published texts, the Fed chair is preparing to inform Congress that tariffs could cause temporary price increases, but that the Fed is focused on preventing the Fed from turning into sustained inflation.
Powell never showed in his speech that interest rates would be cut in July, but he was a patient and reiterated that he should wait for more inflation and labor data before cutting.
At this point, Powell reiterated the Fed’s focus on employment and inflation in an uncertain environment, saying the economy is stable, unemployment is low and inflation is declining, but slightly above the 2% target.
“The economy remains strong despite growing uncertainty.
Unemployment remains low, with the labor market being or near the largest employment. Inflation has dropped significantly, but slightly surpassed its long-term target of 2%.
Increasing tariff uncertainty can increase inflation and have a negative impact on economic activity.
The Fed’s obligation is to keep inflation expectations intact so that one-time price levels rise does not turn into a sustained inflation problem.
“We won’t touch on interest rates until trade becomes more clear.”
Donald Trump targets Powell again!
While the market awaited Powell’s speech, US President Donald Trump once again targeted Powell.
Trump has criticized Powell’s interest rate policy but has argued that the economy is in good condition and emphasized that interest rate cuts are necessary.
He said he hopes Congress will take action on the issue, and Trump insisted that interest rates should be at least 2-3 points lower. At this point, Trump said the US would save $800 billion a year like this.
Trump repeats his stupid remarks about Powell:
“Powell today explains, among other things, why they haven’t been cut back.
There were 10 cuts in Europe, but there are zeros. There is no inflation, the economy is fine. It should be lowered at least 2-3 points.
“I hope Congress will truly take action against this extremely stupid and stubborn individual. We will pay the price for his incompetence for years to come.”
Fed members Michelle Bowman and Christopher Waller said they support interest rate cuts in July.
*This is not investment advice.