Fed in no rush to lower rates despite internal dissent 

Federal Reserve Chair Jerome Powell defended the central bank's June 18 decision to hold short-term interest rates steady while answering questions from lawmakers during a House Financial Services Committee hearing on June 24.

The economy is "in a solid position," Powell said, but uncertainty remains, particularly about trade policy impacts. The Fed will continue to exercise caution as its members wait to see how the tariffs introduced earlier this year by President Donald Trump impact inflation.

"For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," Powell said.

The future is unwritten: If inflation doesn't spike in response to tariffs or if the labor market weakens, "that would tend to suggest cutting sooner," Powell said. If the opposite occurs, there would be less urgency for rate cuts.

"We're just trying to be careful and cautious, and we really think that's the best thing we can do for the people that we serve," Powell said. The Fed is "in a difficult situation in deciding exactly when to move," he added before reiterating that inflation levels will help guide their decisions.

Disagreement at the Fed? Following the Fed's decision last week, Fed Governor Christopher Waller publicly pushed for a rate cut to occur soon, telling CNBC, "I think we're in that position that we could do this as early as July."

While at a conference in Prague on June 23, Fed Governor Michelle Bowman similarly voiced support for a possible July rate cut if inflation doesn't surge, though she said she supported the Fed's most recent decision to leave rates unchanged.

Powell declined to comment on his colleagues' remarks but told the committee that he doesn't think the Fed needs "to be in any rush" and "wouldn't want to point to a particular meeting" when a rate cut could occur.

"What will actually happen with rates is going to depend on the path of the economy, and that's highly uncertain," Powell said. "So I would just say what that means at this moment in time is that a significant majority of the committee — but also there's a pretty significant minority that doesn't agree — but a significant majority feels it will be appropriate to reduce rates later this year."

As Realtor.com Senior Economist Jake Krimmel noted, both Waller and Bowman were "very outspoken about their willingness to cut rates in July" even after backing the Fed's decision last week. However, "I do not view Chair Powell's comments as throwing cold water on a rate cut," Krimmel said following the June 24 committee hearing, "but rather reiterating his more tempered, data-driven approach as a counterweight to his colleagues' recent comments."

The 'best thing' for housing: Powell echoed comments he made last week about the housing market facing both long-term and short-term challenges. While he said the Fed can't do much about the long-term housing shortage issue, it can help address high rates over time.

"The best thing we can do for the housing market — the absolute best thing — is to restore price stability so that rates come down," he said.

Political pressures continue: Trump renewed past criticisms of Powell ahead of the June 23 hearing, writing on Truth Social that the Fed chair was "refusing to lower the Rate" and that the U.S. "will be paying for his incompetence for many years to come."

Federal Housing Finance Agency Director Bill Pulte, who called for Powell to resign last week, also posted new remarks on social media alleging that rate decisions "are not based on data but instead on Powell's politicization of the Fed."

Powell has previously indicated that demands made by Trump and others within his administration do not impact the Fed's decisions on monetary policy.