Jerome Powell Testifies to House of Representatives

U.S. Federal Reserve Chairman Jerome Powell offered little change in stance from his recent remarks, reiterating that the economy is in a good spot, giving the central bank the room to be patient before considering easing monetary policy.

“For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance,” said Powell in prepared remarks for his semiannual monetary policy report to Congress.

Today‘s testimony is of particular note given talks this week from Fed Governors Chris Waller and Michelle Bowman. Both said they would be supportive of a rate cut at the Fed’s next meeting. To date, Powell has given no indication that he is considering such a move.

The break with Powell — by itself, not necessarily major news — comes as President Trump continues to make clear his displeasure with the Fed chairmans reluctance to ease monetary policy.

Rate cuts odds for July continue to be fairly slim at just 18.6%, according to CME FedWatch. Moving to September, the odds of one or more rate cuts jump to more than 80%.

Powell was asked more than once about issues affecting the crypto industry, though it wasnt a significant area of questioning on Tuesday.

When asked about the shifting crypto interests in U.S. banking, he said he sees “a very significant change in the tone” that suggests a future increase in digital assets activity based on “evolving thinking and the evolving status of the crypto industry.” While his agency had been accused by the industry of encouraging banks to steer clear of crypto because of the industry‘s riskiness, he said that the Fed’s view “is that banks get to decide who their customers are.”

“Banks are also free to conduct crypto activities, as long as they do so in a way that is protective of safety and soundness,” he told the lawmakers.

Powell also expressed support for the progress of crypto legislation in Congress.

“I think its a great thing that that bills are moving,” he said. “We need it. We need a stablecoin framework.”