According to a report by ChainCatcher, Federal Reserve Chairman Powell began his two-day congressional testimony on Tuesday, conveying a simple message to Congress: Given the favorable economic conditions, the Federal Reserve can calmly decide when and whether to cut interest rates.

The Wall Street Journal reporter Nick Timiraos, known as the "mouthpiece of the Federal Reserve," pointed out that Fed officials are encouraged by the recent inflation data, which indicates that price pressures have remained moderate, suggesting that inflation may soon be closer to the Fed's 2% target. However, they are concerned about potential policy changes by the Trump administration, including his more aggressive use of tariffs compared to his first term, which could raise the prices of imported goods and disrupt the final stage of their fight against inflation.

Timiraos stated that the US economy has proven to be much stronger. Driven by robust consumer spending, high asset prices, and the lingering effects of the aggressive stimulus measures taken by the US government in 2020 and 2021 to support the economy, the US economy has so far withstood the impact of these tighter policies. By the end of last year, the Fed's preferred inflation indicator, the PCE price index, had fallen to 2.6%, down from its peak of 7.2% in July 2022.