Overview

• Fed Chair Jerome Powell told Congress that higher tariffs could start feeding through to consumer prices this summer and said the central bank will wait for clearer data before easing rates.
• The core inflation rate reached 2.6 percent in May, surpassing the Fed’s 2 percent goal and reinforcing a cautious policy stance.
• Vice Chair Michelle Bowman and Governor Christopher Waller recently indicated support for a rate cut as soon as next month, highlighting divisions among policymakers.
• President Trump has publicly criticized Powell and pressed for deeper rate reductions, underscoring tensions over the Fed’s independence.
• This spring the Fed withdrew its cryptocurrency guidelines and removed reputational risk from bank examinations, easing restrictions on digital asset involvement in the banking system.