Powell To Face Congressional Hearings On Fed Policy Amid Rising Tensions

Federal Reserve Chair Jerome Powell is set to deliver his semiannual monetary policy testimony to Congress this week, amid renewed geopolitical volatility and economic data that could reshape interest rate expectations, Dan Lam reported for Barron’s Daily.

Coinciding with Powell’s appearance, the Conference Board’s June consumer confidence index is expected to post a reading of 99. I Photo: Dan Scarvino Wikimedia Commons

Powell is scheduled to testify before the House on Tuesday and the Senate on Wednesday.

He has previously signaled a cautious stance on rate adjustments, resisting political pressure for cuts until the full effects of tariffs and global instability become clearer.

Coinciding with Powell’s appearance, the Conference Board’s June consumer confidence index is expected to post a reading of 99, up one point from May, following a sharp rebound attributed to easing tariff concerns.

Additional key data this week includes he final estimate of Q1 GDP growth, projected to show a 0.2% annualized decline, reflecting the drag from a record trade deficit on Thursday; and the  release of May’s personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge on Friday. 

Headline PCE is expected to rise 2.3% year-over-year, with core PCE (excluding food and energy) projected to increase 2.6%, slightly above April’s 2.5%.

Core PCE remains at its lowest annual growth rate since March 2021, but concerns over persistent inflation—particularly if oil prices rise further—could keep the Fed in a holding pattern despite political pressure.