Fed Chair Powell Faces Congressional Pressure Amid Rate Cut Debate

According to BlockBeats, Federal Reserve Chair Jerome Powell is set to appear before Congress this week amid increasing pressure for interest rate cuts from both inside and outside the Federal Reserve. This hearing could challenge the Fed's long-standing tradition of political independence. On Tuesday at 22:00 UTC+8, Powell will present the semi-annual monetary policy report to the House Financial Services Committee, followed by a session with the Senate Banking Committee on Wednesday. While such congressional inquiries typically focus on economic conditions and policy directions, the current context is notably different. U.S. President Donald Trump and his administration have been exerting continuous pressure, and there are significant divisions within the Fed itself. Recently, Fed Governors Michelle Bowman and Christopher Waller, both appointed during Trump's first term, have expressed support for a rate cut as early as July. Both are also mentioned as potential successors to Powell next year. Powell may face bipartisan challenges during the hearings, with Republicans aligning with Trump in calling for immediate monetary policy easing, and Democratic Senator Elizabeth Warren also advocating for rate cuts.