Fed Chair Powell's testimony

Before the House Financial Services Committee

Federal Reserve Chair Jerome Powell testified before the House Financial Services Committee on February 12, 2025, as of the Monetary Policy Report to Congress. Key highlights from his testimony include:

• Economic Outlook: Powell described the U.S. economy as strong, with GDP growing at 2.5% in 2024 and a robust labor market featuring a 4% unemployment rate. However, he acknowledged ongoing uncertainties, including potential fiscal policy impacts such as tariffs and tax changes.

• Inflation and Interest Rates: Powell emphasized that inflation remains above the Federal Reserve's 2% target, with the January consumer price index rising to 3% year-over-year. He noted that while inflation has moderated compared to earlier peaks, it still requires vigilance, making immediate rate cuts unlikely.

• Fed Independence: Powell defended the Federal Reserve's independence, rejecting suggestions for greater White House influence over monetary policy.

  He emphasized that the Federal Reserve's decisions are ba…