Press Releases

Today, the House Committee on Financial Services, led by Chairman French Hill (AR-02), hosted Federal Reserve Chairman Jerome Powell to give an update on the Federal Reserve’s monetary policy outlook.

On the strength of the economy:

“Four months into the Trump Administration, American workers and taxpayers are already benefitting from a strong, resilient economy. The Fed has noted that growth is solid, and even former Fed officials have dismissed the idea that a recession is near,” said Chairman Hill.

On the Fed’s decision to end the reputational risk component of bank exams:

"I viewed the reputational risk as often being a catch-all for political bias. I think it's positive to depoliticize bank exams and instead focus on the core and measurable risks,” said Rep. Bryan Steil (WI-01).

"I appreciate the Federal Reserve's announcement yesterday to end the use of reputational risk during banking examinations. The supervisory practice was used as a tool to pressure banks to refrain from offering financial services to politically disfavored individuals or industries," said Rep. Tim Moore (NC-14).

On the importance of the U.S. dollar remaining the global reserve currency:

"I believe the U.S. dollar status as the global reserve currency is essential. It allows the U.S. to borrow at lower costs, which stimulates economic growth and increases standards of living," said Rep. Troy Downing (MT-02).

On future interest rate cuts:

Financial Services Vice Chair for Communications Rep. Mike Lawler (NY-17) asked, "As recently as yesterday, Fed Governor Bowman indicated that if inflation pressures remain contained, the Fed should consider lower rates and said she is open to a rate cut in July. Governor Waller said very much the same. Do you believe that we are in a position where we may be able to cut rates in July?"

Chairman Powell replied, “I would say this. I think if it turns out that inflation pressures do remain contained, then we will get to a place where we cut rates sooner rather than later...”

During his opening statement, Chairman Powell outlined his view on the economy:

“Despite elevated uncertainty, the economy is in a solid position. The unemployment rate remains low, and the labor market is at or near maximum employment. Inflation has come down a great deal but has been running somewhat above our 2 percent longer-run objective. …Incoming data suggest that the economy remains solid. …In the labor market, conditions have remained solid. Payroll job gains averaged a moderate 124,000 per month in the first five months of the year. The unemployment rate, at 4.2 percent in May, remains low and has stayed in a narrow range for the past year. Wage growth has continued to moderate while still outpacing inflation. …Inflation has eased significantly from its highs in mid-2022 but remains somewhat elevated relative to our 2 percent longer-run goal. …We understand that our actions affect communities, families, and businesses across the country. Everything we do is in service to our public mission.”