The FRB believes that better inflation data is needed for interest rate cuts. Chairman Powell stated this during his testimony before Congress.

In his semi-annual monetary policy report to the Senate Banking, Housing, and Urban Affairs Committee, FRB Chairman Powell said the following on Tuesday.

Chairman Powell's congressional testimony took place amid increasing impatience among members of the interest rate cut and dissatisfaction with the central bank's proposal to strengthen capital requirements for Wall Street banks.

According to the opening statement, the FRB stated that "the risks we are facing are not only the rise in inflation," and will continue to determine based on incoming economic data.

The head of the FRB warned that starting the rate cut too early or too late could "unduly weaken economic activity and employment". The Fed chairman warned that if the rate cut is too early or too late, there is a risk of "unduly weakening economic activity and employment."

A senior FRB official is facing political pressure to lower rates as the unemployment rate continues to rise. In testimony for the Senate hearing, Chairman Powell stated that the job market is "strong but not overheated".