Overview

• Fed Chair Jerome Powell told Congress the central bank will hold its 4.25%–4.5% benchmark rate steady until the impact of higher tariffs on inflation becomes clearer.
• Speaking at the NATO summit, President Trump labeled Powell “terrible” and said he has “three or four” candidates in mind to succeed him, including former Fed governor Kevin Warsh and Treasury Secretary Scott Bessent.
• The Wall Street Journal reported Trump may name Powell’s replacement as early as September or October, a move that could influence market expectations and test the Fed’s independence.
• The Bloomberg Dollar Spot Index slid to its weakest level since March 2022 after investors reacted to reports of an early Fed succession and renewed rate-cut pressures.
• Investors and policymakers are now focused on the July 15 release of June’s Consumer Price Index for fresh insight into inflation trends and the Fed’s next policy steps.