BiggerPockets Daily Fed Chair Powell Gives Mid-Year Testimony to Congress, Plus the Latest Home Price Report
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Jun 24, 2025 Hear about the intense pressure Federal Reserve Chair Jerome Powell faces as he testifies before Congress, with lawmakers probing his cautious stance amidst economic uncertainties. Discover how President Trump's tariffs are influencing the Fed’s decisions and proposed banking regulations. Plus, get insights on the current housing market, where home price growth has decelerated to 2.7%, showcasing a cooling buyer demand but potential opportunities for savvy investors.
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Powell's Inflation Misjudgment
- Jerome Powell initially misjudged inflation as transitory, which was incorrect given federal government spending.
- Inflation was deeply embedded and required a prolonged rate hike cycle to control it.
Fed's Rate Cut Delay Risks
- The Federal Reserve has kept interest rates steady but plans to wait until September to cut rates.
- This cautious stance may risk economic turmoil due to delayed response to emerging problems.
Political Pressures on Fed Chair
- Powell faces political pressure from Trump and lawmakers to cut rates amid economic concerns.
- Fed's independence and policies on tariffs, banking regulations, and reserve payments are key topics in testimony.