Fed Chair Faces Lawmakers at a Critical Juncture
Published On Feb 11, 2025, 5:02 AM
Jerome Powell, the Federal Reserve chair, will testify before Congress about the challenges the Fed faces concerning inflation and economic policies, especially as inflation remains above targets. Powell's previous optimistic outlook contrasts with current concerns over tariffs and an uncertain economic landscape. The Fed has paused its rate-cutting plans while it evaluates economic data, which has shown some moderation in inflation in specific sectors like housing. The political environment, especially under President Trump, complicates the Fed's decision-making processes.
Stock Forecasts
XLF
Negative
The uncertainty surrounding inflation and foreign policy impacts suggests that investors should be cautious. The Fed's pause on rate cuts indicates a tightening of financial conditions, which could negatively impact sectors sensitive to interest rates, such as real estate.
Related News
CFPB Employees Left Stranded and Confused After Stop-Work Orders
Feb 10, 2025, 6:05 PM
Since the acting director of the Consumer Financial Protection Bureau issued stop-work orders, employees have been trying to decipher exactly what they mean.
36 Hours After Russell Vought Took Over Consumer Bureau, He Shut Its Operations
Feb 9, 2025, 6:18 PM
The agency had been one of Wall Street’s most feared regulators, with the power to issue rules on mortgages, credit cards, student loans and other areas affecting Americans’ financial lives.
Russell Vought Orders Consumer Protection Bureau’s Headquarters Closed for a Week
Feb 9, 2025, 3:33 PM
The order to shutter the agency’s headquarters follows another order issued Saturday by Mr. Vought, who also leads the Office of Management and Budget, telling agency employees to halt nearly all their work.