Stock market today: Dow, S&P 500, Nasdaq jump as Israel-Iran ceasefire teeters, Powell testifies in Congress
In remarks made on Capitol Hill early Tuesday, Federal Reserve Chair Jerome Powell brushed aside political criticism and reaffirmed the Fed’s commitment to its mission: delivering a strong and stable economy for the American people.
When asked about recent name-calling and public pressure from political leaders, including accusations from President Trump of being “too late” on rate cuts, Powell made it clear that such distractions don’t influence the Fed’s work.
“We’re focused on one thing,” Powell said at the start of his two-day testimony. “And that is we want to deliver a good economy for the benefit of the American people. That’s it. Anything else is kind of a distraction.”
Powell didn’t reference any specific criticism or comments but underscored his approach to the job, saying, “We always do what we think is the right thing to do. And, you know, we live with the consequences. I don’t know how else to do the job.”
Pressed again on whether the American people should be concerned about political attacks swaying the Fed’s independence, Powell added, “I care about doing the job for the American people. The things we do matter a lot for people’s lives, and that really concentrates the mind.”
“You want to just stay focused on that task as long as you’re sitting in these chairs that we occupy. Focus on that task. Do what you think is the right thing and take the consequences.”
‘Well-positioned to wait’
Earlier in his testimony, Fed Chair Jerome Powell reiterated that the central bank can afford to hold interest rates steady for now. In prepared remarks to the House Financial Services Committee, he said, “For the time being, we are well-positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”
Beyond addressing political pressure, Powell also spoke to broader economic challenges facing the Fed, including the impact of tariffs and rising geopolitical tensions in the Middle East.
On inflation, he acknowledged the potential effects of trade: “At this time all forecasters are expecting pretty soon that that some significant inflation will show up from tariffs” Powell said, referencing the Fed’s latest projections of higher inflation and slower economic growth compared to March’s forecast.
As for the conflict between Israel and Iran, Powell urged caution: “It’s too early to know what any economic implications might be. I would not want to speculate. Like everyone else, we are, of course, watching the situation.”