Powell Headed for Congressional Grilling Over Fed’s Rate Hold

Published on June 23, 2025

Federal Reserve Chair Jerome Powell is set to face two days of tough questioning before Congress—first from the House Financial Services Committee on Tuesday, then from the Senate Banking Committee on Wednesday. The hearings come shortly after the Fed decided to keep interest rates unchanged for the fourth straight meetingwsj.com+9reuters.com+9fastbull.com+9.

1. Why the grilling?

Powell and his colleagues are being pressed to justify maintaining the federal funds rate at 4.25–4.5%, despite President Trump’s repeated calls for substantial cuts reuters.com+1investopedia.com+1.

Trump’s criticism has grown personal, accusing Powell of being “incompetent” and “dumb” .

2. Fed's “wait-and-see” stance

Powell emphasized that the Fed is "well-positioned to wait to learn more about the likely course of the economy before adjusting policy," citing uncertainty over tariff impacts and global developmentsreuters.com+8reuters.com+8apnews.com+8.

Some Fed members, including Michelle Bowman and Christopher Waller, have indicated openness to a rate cut as early as July—but Powell and others prefer to hold off until Septemberfinance.yahoo.com+15reuters.com+15apnews.com+15.

3. Key points likely at the hearings

Tariffs and global disruptions, notably involving Iran and Israel, may affect inflation and oil prices—topics lawmakers will scrutinize reuters.com+1fastbull.com+1.

Powell is expected to defend the Fed’s independence, arguing decisions are based on data and not political pressureinvestopedia.com.

He may also be asked about regulatory policy, bank reserves, and recent deregulatory initiatives from Vice Chair Bowman fastbull.com.