Jerome Powell wants to clarify, among other things, the economic effects of the Trump administration's tariffs before a potential interest rate cut, reports Bloomberg, which has taken part in the speech before the hearing.
"The effects of the tariffs will depend, among other things, on what level they ultimately end up at", says Powell.
There is time to wait
He adds that there is time to wait to see how the economy develops before decisions on interest rate adjustments are made. He also points out that the increased tariffs will likely push up prices in the US and hit economic activity in the American economy.
The hearing comes after President Donald Trump made a new attempt to pressure Powell to get the Fed to cut the key interest rate.
In a post on the social network Truth Social, Trump writes that the Fed's key interest rate should already have been cut by 2-3 percentage points and that Jerome Powell must explain why he has not already cut the interest rate.
"We will pay for his incompetence for many years to come", Trump writes and urges the Fed's board to act in capital letters in the post.
Left the key interest rate unchanged
Powell will be questioned in the House Financial Services Committee on Tuesday, starting at 4 pm Swedish time. Another hearing will then take place in the Senate Banking Committee on Wednesday.
The hearings come after the Fed decided to leave the key interest rate unchanged at 4.25-4.50 percent less than a week ago.
