Federal Reserve Chair Jerome Powell was back on Capitol Hill for his second day of testimony. This time he was in front of the Senate Committee on Banking, Housing, and Urban Affairs. Powell has said recent economic data would likely have justified cutting interest rates,

U.S. Federal Reserve Chair Jerome Powell resumed two days of congressional testimony on Wednesday, appearing before the Senate Banking Committee after scrutiny before a House panel the day before that focused on the Fed's concerns that the Trump administration's tariff plans will raise inflation.

Waller highlighted that inflation has been running close to the Fed’s 2% target, and said the current rate setting (targeting 4.25%-4.5%) is 1.25 to 1.5 percentage points above neutral -- in other words,

The Fed remains in a holding pattern, keeping rates unchanged as inflation risks from tariffs and economic uncertainty persist. Click to read more here.

Federal Reserve chief Jerome Powell on Tuesday said a good case could be made for cutting interest rates soon, but he said the Fed is holding off for now because of an expected increase in inflation from U.