Fed’s Powell Maintains Cautious Stance on Rate Cuts Amid Diverging Views

Federal Reserve Chair Jerome Powell reiterated a patient approach to monetary policy during his congressional testimony, emphasizing the U.S. economy's resilience. "We are well positioned to wait," Powell stated, signaling no urgency for rate cuts despite mounting political pressure and diverging opinions within the Fed.

Two Fed governors recently voiced support for easing, contrasting Powell's stance. Market expectations reflect this uncertainty—July rate cut odds remain low at 18.6%, while September projections surge above 80%. The disconnect highlights growing tension between economic data and political demands.

Cryptocurrency markets often react to Fed liquidity signals, though Powell's remarks offered no immediate triggers. Traders will scrutinize upcoming testimony exchanges for hints about the timing of policy shifts that could impact risk assets.