After the Fed kept the interest rate unchanged in June, Jerome Powell’s Capitol Hill testimony is the most awaited event among crypto investors. Donald Trump’s trade tariffs and the Middle East tension have impacted the crypto market. Even Bitcoin crashed to a multi-month low at $98.5k, and the rest of altcoins dethroned. Let’s discuss what to expect from Powell’s testimony.
Jerome Powell Capitol Hill Testimony Concerns Interest Rate Cuts
The Fed Chair will testify before Congress (House) today, June 24, and the Senate on June 25 to present the Fed’s semiannual monetary policy report. Jerome Powell’s Capitol Hill testimony comes amid the heightened pressures from politicians and Fed internal members to cut interest rates.
🚨 Fed Chair Jerome Powell testifies before Congress today (10 AM EST | 7:30 PM IST)
Meanwhile, Trump is slamming Powell for not cutting rates.
🔸 “Europe has had 10 cuts, we’ve had ZERO.”
🔸 Trump demands 2–3% rate cuts, claiming it could save $800B/year
🔸 Calls Powell… pic.twitter.com/au2oT6d000
— Karan Singh Arora (@thisisksa) June 24, 2025
US President Donald Trump has called him too late and even threatened to fire him after the Fed’s decision to keep the interest rate unchanged at 4.25%–4.5%. Experts believe this is the ‘wait and see’ strategy. The Fed believes there’s high uncertainty around Trump’s tariffs on the US economy.
However, now, even Fed Governors Michelle Bowman and Christopher Waller have asked for rate cuts as early as July. Also, investors anticipate July rate cuts with 23% odds on CME FedWatch data. The odds are even higher at 82% for September.
What to Expect From Jerome Powell’s Capitol Hill Testimony?
The Fed Chair is under extreme pressure from all sides, i.e., Donald Trump from Republicans, Elizabeth Warren from Democrats, and netizens. A prominent discussion on the reasons for the delay in the interest rate cuts and their impact is to be discussed in this meeting.
Besides, further clarity is needed on the number of rate cuts that could come with this meeting. Per CME’s outlook, the Fed only expects one rate cut in 2025, but the investors hope for more. If Powell speaks in their decision, the crypto market could witness a rally. However, if he is convinced that the market is wrong, the dollar could rise.
Also, Powell is expected to address the US airstrike on Iran, as it can impact inflation and oil prices. With the escalation of the Israel-Iran conflict, the oil and gold prices saw an uptrend.
More importantly, if the Hormuz was closed, it could spike fuel costs. As a result, the US inflation could re-accelerate.
