Federal Reserve Chair Jerome Powell will appear before Congress this week, where he will assess the Fed's battle against inflation and possibly face scrutiny about the central bank's decision-making process.

Powell is scheduled to appear before the Senate on Tuesday and the House of Representatives on Wednesday to deliver the Fed's twice-yearly report to Congress. The Federal Reserve submitted a written report to lawmakers last week outlining the state of the economy, giving an insight into Powell's testimony.

The report described inflation as running "somewhat above" the Fed's target of a 2% annual rate. It also described the job market as solid, with relatively low unemployment. The Fed's job, as mandated by Congress, is ꧅to keep inflation under control and employment 🐓high.

The Federal Reserve is in a Holding Pattern

Powell's testimony comes as the 澳洲幸运5官方开奖结果体彩网:Fed has entered a "wait-and-see" phase in i⛦ts approach to setting interest rates.

The Fed had cut its benchmark interest rate three times starting in September, as the post-pandemic burst of inflation seemed headed down to the central bank's target of 2% a year.

However, that progress has been stalled for months, and President Donald Trump's flurry of tariffs (both imposed and threatened) has 澳洲幸运5官♎方🐬开奖结果体彩网:created uncertainty among policymakers about whet🍨her a fresh spate of inflation is on the way.

Powell Could Face Some Scrutiny

Powell could also face 💜tough questions about the role of the Federal Reserve, if the social media posts by billionaire Elon Musk are any indication.

Over the past few days, Musk made several posts on his social media platform X calling for an audit of the Fed and suggesting former congressman Ron Paul, an advocate for shutting down the Federal Reserve, be installed as its chairman. (The federal government's watchdog agency, the Government Accountability Office, frequently audits the Fed.)

Musk's social media posts have sometimes served as a preview of, or set the agenda for actions by the Trump administration since Trump appointed Musk as 澳洲幸运5官方开奖结果体彩网:a cost-cutting czar. For example, The White House shut down the activities of the U.S. Agency on International Development and the Consumer Financial Protection Bureau after Musk criticized them.

Powell May Defend the Fed's Independence

The independence of the Federal Reserve may also be a hot subject in the hearing, especially in the context of Trump's 澳洲幸运5官方开奖结ꦉ果体彩网:blitz to rapidly reshape government policy via executive order. Trump has suggested giving the 澳洲幸运5官方开奖结果体彩网:White House more influence over Fed policy decisions, while Powell has 澳洲幸运5官方开奖结果体彩网:defended the Fed's independence from politics as crucial to its mission.

The Federal Reserve's main tool for controlling inflation is the 澳洲幸运5官方开奖结果体彩网:federal funds rate, which influences borrowing costs on all kinds of loans. In the past, Trump has clashed with Powell and criticized him 🐲for keeping rates too high.

Last week, however, Trump said the Fed holding interest rates steady at its last meeting was "the right thing to do," reversing his previous rhetoric calling for lower rates.