Federal Reserve Chair Jerome Powell stuck to his cautious stance on interest rate policy during his Congressional testimony on June 24, stating that the U.S. central bank is in no rush to adjust rates as it continues to monitor economic data.
Fed Chair Repeats Wait-and-See Approach
In his semiannual testimony to Congress, Powell reiterated that the economy is performing well, giving the Fed enough space to be âwell positioned to waitâ before shifting its monetary policy stance.
âFor the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments,â Powell told lawmakers.
This measured tone comes despite growing speculation over potential rate cuts, especially in the face of cooling inflation and a slowing labor market.
Fed Governors Suggest July Rate Cut
In contrast to Powellâs patience, two Fed membersâChris Waller and Michelle Bowmanâvoiced support for a potential rate cut in July, signaling a rare public divergence within the Fed.
Their comments have caught the attention of traders and policymakers alike, especially as political pressure from President Trump intensifies over the Fedâs reluctance to cut rates ahead of the 2025 election.
Markets Eye September for First Cut
Despite the internal split, markets are still not pricing in a July cut with high conviction.
- CME FedWatch tool puts July cut odds at 18.6%
- September odds jump to over 80%
This suggests investors believe Powell will hold the line through the summer, while remaining open to easing in the fall if economic data softens further.
Political Backdrop: Trumpâs Pressure Mounts
President Donald Trump has made no secret of his dissatisfaction with Powellâs leadership and refusal to quickly cut interest rates. The divide between Powell and some Fed governors may become a central issue in the economic narrative heading into the 2026 election season.
Why It Matters for Markets and Crypto
For equities and crypto markets, rate cut expectations remain a key catalyst. Powellâs remarks suggest no immediate policy easing, but the increasing likelihood of September cuts may continue to drive investor sentiment and risk appetite.
Bitcoin, which recently rebounded above $105K, may react sharply to any hint of rate cuts, especially given its correlation with macro-driven liquidity cycles.
Key Takeaways
- Powell reiterates patience: Fed in no rush to cut rates
- Internal Fed rift emerges: Two governors support July cut
- Markets still favor September: 80%+ chance of cuts by then
- Political pressure builds: Trump criticizes Powellâs stance
- Macro outlook remains uncertain: Investors await more data
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.