Powell is about to face a "verbal battle" on Capitol Hill and may encounter a bipartisan attack

ChainCatcher news, Federal Reserve Chairman Powell will head to Capitol Hill this week, where he will face increasing pressure for interest rate cuts from both inside and outside the Federal Reserve. This hearing may rewrite the Fed's tradition of "staying away from politics" for nearly a decade.

On Tuesday at 22:00, Powell will submit the semiannual monetary policy report to the House Financial Services Committee, and on Wednesday he will move to the Senate Banking Committee. Although such congressional inquiries typically focus on the economic situation and policy direction, the context this time is markedly different: not only is Trump and his administration continuously applying pressure, but there are also key fractures within the Federal Reserve. Fed governors Bowman and Waller have recently expressed support for a rate cut as early as July; both were appointed during Trump's first term and are mentioned as potential candidates to succeed Powell next year. Powell may face a bipartisan onslaught during this hearing: Republicans following Trump's call for immediate monetary policy easing, while Democratic Senator Elizabeth Warren is also calling for a rate cut.