BiggerPockets Daily Powell Holds Steady at Congress While Fed Proposes Reduced Bank Leverage Requirements
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Jun 26, 2025 Federal Reserve Chair Jerome Powell faces tough questions in Congress about inflation and rate cuts, revealing the political pressures shaping monetary policy. Meanwhile, the Fed's proposal to loosen bank capital requirements raises eyebrows, sparking a debate on financial stability. The podcast also highlights real estate strategies, including the benefits of tax deferrals and home security solutions. These discussions provide insights into current economic challenges and opportunities for investors.
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Powell's Cautious Rate Approach
- Jerome Powell refrained from committing to a rate cut, emphasizing the need for more data in July to assess inflation and tariffs.
- The Federal Reserve acknowledges tariffs might have less inflationary impact than expected, which would influence policy decisions.
Dollar's Status and Debt Reality
- Powell dismissed notions that the dollar's global status is at risk as premature and exaggerated.
- He highlighted the U.S. debt trajectory as unsustainable but did not propose specific remedies.
Uncertain Tariff Impact on Inflation
- Powell acknowledged tariffs' impact on inflation is difficult to predict and questioned who will bear the cost.
- The uncertainty over tariffs’ pass-through into consumer prices affects monetary policy assessment.