Fed Chair Jerome Powell holds firm on interest rates, resisting pressure to cut

Federal Reserve Chair Jerome Powell reiterated his view that the central bank should keep interest rates steady for now, citing inflation risks from U.S. tariffs. 

Powell, who made his remarks in prepared testimony Tuesday before the House Committee on Financial Services, has been under pressure from President Trump to cut rates, which would make it cheaper for consumers and businesses to borrow money. At its June 18 meeting, the Fed maintained its benchmark rate in a range of 4.25% to 4.5%, where it's been parked since December. 

In his semiannual testimony, Powell cited uncertainty over the impact of the Trump administration's tariffs, noting that any resulting inflation "could be short lived" or "could instead be more persistent." So far, data tracked by the Fed shows that tariffs have had little impact on overall consumer prices.