On February 11, 2025, Federal Reserve Chair Jerome Powell testified before the Senate Banking Committee, reinforcing the Fed’s cautious stance on interest rates. He highlighted that while inflation is slightly above the 2% target, the economy remains strong, and there’s no rush to cut rates. Powell also warned against loosening policy too soon, as it could slow inflation progress.
Stocks hold steady
U.S. stock markets had a mixed reaction to Powell’s testimony. The S&P 500 edged up 0.04% to $605.31, while the Dow Jones gained 0.31% to $446.11. The Nasdaq, however, dipped 0.26% to $527.99 as tech stocks reacted to Powell’s cautious outlook. Investors remain on edge, waiting for clearer signals on future rate cuts.
Gold pulls back
Gold prices took a slight hit after Powell’s testimony, as some investors dialed back safe-haven bets. The SPDR Gold Shares ETF dropped 0.39%, closing at $267.39. While gold has been on a strong run, traders are reassessing its short-term outlook in light of the Fed’s steady stance.
Oil prices stay firm
Oil markets showed resilience, with U.S. crude oil rising 1.15% to $78.27. Supply concerns and geopolitical risks kept prices supported, despite Powell’s measured tone on the economy.
Crypto slides
Bitcoin and the broader crypto market saw a selloff following Powell’s remarks. Bitcoin fell 2.07% to $96,143, as traders adjusted to expectations of higher-for-longer interest rates. Crypto markets remain highly sensitive to Fed policy, with investors watching closely for any shifts.
Looking ahead
Powell’s testimony reaffirmed the Fed’s wait-and-see approach, keeping markets cautious. Stocks are holding up, but gold and crypto saw some pullbacks. The next big focus? Upcoming inflation data and how the Fed reacts to it in the coming months.