Overview

• Powell told the House Financial Services Committee that current policy can remain unchanged until more is known about economic trends
• Trump called Powell “dumb” and “stubborn” on Truth Social and pressed the Fed’s governors to remove him
• The federal funds rate remains at 4.25%–4.50% after a unanimous Fed decision last week
• Governors Christopher Waller and Michelle Bowman signaled support for a rate cut at the July 29–30 meeting if inflation pressures stay contained
• Powell projected May’s PCE inflation index will show a 2.3% annual increase, noting tariffs could push prices higher and weigh on growth