Powell: Fed to Wait for More Data Before Cuts

Federal Reserve Chair Jerome Powell, testifying before Congress, stated the Fed will not rush to cut interest rates despite pressure from President Trump for immediate reductions. Most Fed officials now expect rate cuts later in the year if inflation stays contained and the labor market weakens, but Powell would not commit to a specific meeting for action. He noted the labor market remains strong and economic forecasts do not suggest a near-term recession. Addressing tariff concerns, Powell indicated inflation from tariffs may be less severe than feared and said the Fed will reassess its stance as more data becomes available over the summer. Powell reiterated that the Fed prioritizes long-term price stability over short-term political influence. He also clarified that Fed policy is not intended to directly influence housing supply or comment on trade policy decisions.