Fed's Powell offers no hint of near-term rate cut

Fed Chair Jerome Powell’s prepared semi-annual testimony to the House today offered no hint that a rate cut is coming any time soon. Despite the recent dovish comments from Trump-appointed Governors Michelle Bowman and Christopher Waller – that they might support a rate cut as soon as at the next FOMC meeting in late-July – Powell concludes that “for the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance”. He repeated the language from last week’s FOMC statement that Fed officials are “attentive to the risks to both sides of our dual mandate”, since “increases in tariffs this year are likely to push up prices and weigh on economic activity”.