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Federal Reserve Chair Jerome Powell will testify to Congress Tuesday and Wednesday, the place he’ll focus on the state of the Federal Reserve’s battle in opposition to inflation.
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Powell might additionally face scrutiny from Republican allies of influential White Home advisor Elon Musk, who referred to as for transparency from the Fed in a social media submit over the weekend.
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Powell may additionally focus on the independence of the Federal Reserve. In current months, he has rebuffed President Donald Trump’s recommendations that the White Home ought to have extra affect over the Fed’s coverage selections.
Federal Reserve Chair Jerome Powell will seem earlier than Congress this week, the place he’ll assess the Fed’s battle in opposition to inflation and probably face scrutiny in regards to the central financial institution’s decision-making course of.
Powell is scheduled to seem earlier than the Senate on Tuesday and the Home of Representatives on Wednesday to ship the Fed’s twice-yearly report back to Congress. The Federal Reserve submitted a written report back to lawmakers final week outlining the state of the economic system, giving an perception into Powell’s testimony.
The report described inflation as operating “considerably above” the Fed’s goal of a 2% annual fee. It additionally described the job market as stable, with comparatively low unemployment. The Fed’s job, as mandated by Congress, is to maintain inflation below management and employment excessive.
Powell’s testimony comes because the Fed has entered a “wait-and-see” part in its strategy to setting rates of interest.
The Fed had lower its benchmark rate of interest 3 times beginning in September, because the post-pandemic burst of inflation appeared headed right down to the central financial institution’s goal of two% a 12 months.
Nevertheless, that progress has been stalled for months, and President Donald Trump’s flurry of tariffs (each imposed and threatened) has created uncertainty amongst policymakers about whether or not a recent spate of inflation is on the best way.
Powell might additionally face robust questions in regards to the position of the Federal Reserve, if the social media posts by billionaire Elon Musk are any indication.
Over the previous few days, Musk made a number of posts on his social media platform X calling for an audit of the Fed and suggesting former congressman Ron Paul, an advocate for shutting down the Federal Reserve, be put in as its chairman. (The federal authorities’s watchdog company, the Authorities Accountability Workplace, continuously audits the Fed.)
Musk’s social media posts have typically served as a preview of, or set the agenda for actions by the Trump administration since Trump appointed Musk as a cost-cutting czar. For instance, The White Home shut down the actions of the U.S. Company on Worldwide Improvement and the Shopper Monetary Safety Bureau after Musk criticized them.
