Federal Reserve Chair Jerome Powell testified on Capitol Hill for a second day, facing questions on a range of topics including trade tariffs, the dismantling of the Consumer Financial Protection Bureau (CFPB), and crypto banking. Powell stated that the Fed's job is not to make or comment on tariff policy, but agreed with Senator Elizabeth Warren that without the CFPB, there is currently no other regulator monitoring banks and consumer protections. Powell also addressed the risks of crypto activity in banks, stating that while it is appropriate for banks to understand these risks, they should not go too far. Regarding monetary policy, Powell reiterated that the committee will take its time lowering interest rates and wants to make more progress on inflation, as the latest CPI report showed inflation at 3%. Powell also mentioned that quantitative easing is only used when interest rates are already at zero.



Other News from Today