Federal Reserve Chair Powell Testifies to Congress on Economic Risks and Rate Cuts

Federal Reserve Chairman Jerome Powell testified before Congress, highlighting the central bank's focus on downside risks to the economy as well as inflation. Powell expressed concerns about the cooling job market and persistently high prices, signaling that the Fed may be moving closer to cutting interest rates.

He emphasized the need to balance reducing policy restraint to avoid weakening economic activity and employment. While Bitcoin briefly bounced back above $57,000, analysts expect selling pressure from various factors to weigh on its price.

Powell's comments suggest that the foundations are being laid for a potential rate cut in September, though he did not provide a definitive timeline. The stock market continues to hit all-time highs, but investors are cautious about a potential pullback and are closely watching Powell's testimony for insights into the central bank's view on the economy and inflation.