Powell Holds Firm Against Trump's Rate Cut Demands

Federal Reserve Chair Jerome Powell affirmed the institution's cautious approach to potential interest rate cuts, despite pressure from President Trump for immediate reductions. Speaking before the House Financial Services Committee, Powell emphasized the importance of monitoring the economy's trajectory before making policy adjustments.

Powell faces two days of congressional scrutiny as President Trump continues to criticize the Fed's reluctance to lower borrowing costs. Trump expressed his discontent on social media, urging Congress to address what he called Powell's ineptitude.

While Powell maintains support in Congress, this backing could waver due to ongoing presidential attacks. The Fed's rate decisions are guided by economic health and inflation concerns, resisting the influence of government debt financing needs.

(With inputs from agencies.)