Will Powell Signal Trouble? S&P 500, Gold, and Dollar Face Big Test

Powell’s Congressional Testimony to Set Market Tone Amid Tariff Concerns

Federal Reserve Chair Jerome Powell begins his semi-annual testimony before Congress today, delivering a key update on monetary policy. Traders will closely scrutinize his remarks for signals on inflation, interest rates, and the Fed’s stance on President Trump’s renewed tariffs. Powell appears before the Senate Banking Committee today and the House Financial Services Committee on Wednesday, just ahead of key Consumer Price Index (CPI) data that could further shape market expectations.

Inflation Remains Key as Fed Holds Rates Steady

The Fed has kept its benchmark interest rate at 4.25%-4.5% after cutting rates by 100 basis points between September and December. However, inflation remains above the 2% target, and traders are eager to see if Powell signals a shift in policy. The latest CPI data, due Wednesday, could impact market sentiment and influence Powell’s tone.