Federal Reserve Chairman Jerome Powell is testifying before the House Financial Services Committee as this article is being published. As always, the markets are closely watching his responses—particularly regarding the state of the economy, potential interest rate cuts, tariffs, and new policies under the current administration.

Chairman Powell emphasized that the outlook for the economy remains uncertain. He stated that the Fed is waiting to see the full impact of tariffs on both consumers and businesses before making any decisions about cutting interest rates.

When asked about the declining role of the U.S. dollar as the world’s reserve currency, Powell responded that the dollar remains one of the most sought-after and respected currencies globally. He also noted that foreign demand for U.S. Treasury bonds remains strong, which continues to support the value of the dollar.

Throughout the hearing, Powell remained careful to avoid political statements in order to maintain the Federal Reserve’s independence. His current term ends on May 15, 2026. However, there is speculation that the President may choose not to renominate him, given ongoing frustrations over Powell’s reluctance to lower interest rates