From CNBC:

Federal Reserve Chairman Jerome Powell is set to testify before Congress to provide clarity on monetary policy amid market uncertainty. Markets anticipate rate cuts starting in June, with four quarter-point cuts expected this year. Powell’s challenge involves balancing inflation trends and Wall Street expectations.

As Powell navigates the delicate balance of inflation trends and market expectations, recent data has shown mixed signals. While inflation was trending towards the Fed’s target, higher consumer prices in January sparked concerns. Market volatility and uncertainty around rates add pressure to Powell’s message to Congress.

Beyond economic concerns, Powell also faces political pressures, including calls to start cutting rates. However, concerns about labor market weakness and speculative behavior complicate the Fed’s decision-making. Powell must justify any rate cuts with solid reasoning to address inflation projections and potential economic risks. Political considerations also play a role in shaping the Fed’s response to current economic challenges.



Read more: What to watch with Fed Chair Powell heading to Capitol Hill Wednesday