Silver Rises Over 120% YTD 
Federal Reserve Chair Jerome Powell is maintaining a cautious stance on interest rate cuts ahead of his congressional testimony, despite mounting pressure from President Trump and signs of division within the Fed itself. In his prepared remarks, Powell indicated the Fed will wait to better understand how trade wars affect the economy before adjusting rates, warning that tariffs are likely to push inflation higher and slow economic activity.
The Fed has kept rates unchanged for four consecutive meetings, with the last cut occurring in December. This reluctance has frustrated President Trump, who took to Truth Social to urge Republican lawmakers to challenge Powell during the hearings, calling him “very dumb” and “hardheaded.” Trump argues that inflation is low, borrowing costs are too high, and elevated rates are increasing the federal government’s debt servicing costs.
Notably, two Fed governors appointed during Trump’s first term—Chris Waller and Michelle Bowman—have suggested they would support a rate cut at the July 29-30 meeting. They believe tariff-induced inflation will be temporary while expressing greater concern about weakening job market conditions. The Fed projects inflation will rise to 3% in 2025 before gradually declining to its 2% target by 2027. Powell’s term as chairman expires in May, with Waller considered a potential successor.
