During the recent congressional hearing, Fed Chairman Jerome Powell expressed a cautious attitude towards interest rate cuts. Although some economic indicators support a rate cut, Powell did not hint at taking action in July, but rather suggested that a decision may have to wait until after the September Federal Open Market Committee meeting.

Powell pointed out that if inflationary pressures significantly ease and the labor market weakens, it would provide a basis for lowering interest rates. However, he emphasized that decisions would not be made hastily. Powell believes that due to the impact of tariff policies, there may be price increases in the summer, so he hopes to observe more data to determine whether it exceeds expectations.

Facing pressure from the public and the political arena, Powell's statements indicate that he is striving to find a balance between policy flexibility and robustness. This stance may influence market expectations, leading investors to reassess the likelihood of monetary policy easing in the short term.

If Powell insists on waiting until September, there may not be any monetary policy easing this summer. It is noteworthy that Powell is focusing on price data and tariff impacts, which means that the economic data trends in the coming months will significantly influence the policy direction.

By rejecting a commitment to a fixed timetable for interest rate cuts and instead emphasizing 'fact-based judgment,' Powell has reserved ample flexibility for the Fed's future strategy adjustments. This cautious attitude indicates that the Fed remains vigilant in the current economic environment and is reluctant to easily change its monetary policy stance.

Overall, market participants need to closely monitor future economic data, especially inflation and employment figures, as well as developments in trade policy, as these factors will be key in influencing Fed decisions.