Powell testified in Congress on the second day: He has not been able to determine the specific impact of tariffs on inflation and reiterated the Federal Reserve's stance of maintaining a wait-and-see attitude.

Federal Reserve Chairman Powell testified in Congress on Wednesday that the Fed has not been able to determine the specific impact of tariffs on inflation, and decisions still need to be cautious. "The question is, who will bear the cost of tariffs?" Powell responded to lawmakers at the Senate Banking Committee hearing, "How much of the tariffs will be passed on to inflation? To be honest, it is difficult to predict in advance." This week is the second consecutive day that Powell has been questioned in Congress. He pointed out that although recent inflation data has been lower than expected, with the uncertain impact of tariffs and the economy still robust, there is no rush to cut interest rates. Earlier on June 18, the Federal Reserve kept interest rates unchanged. Although Federal Reserve governors Waller and Bowman stated that if inflation remains moderate, a rate cut could come as early as July, Powell reiterated his position of "waiting for more data" in hearings in the House and Senate. Powell pointed out that the current data reflects "past situations," but most economists expect inflation to still rise significantly this year under the impact of tariff policies. Since recent inflation has slowed down, Trump has continually pressured the Federal Reserve to cut rates quickly and has tweeted on social media for Congress to "treat Powell hard." However, at the hearing on Wednesday, most Republican lawmakers did not follow suit and maintained a relatively restrained atmosphere of questioning. Only Senator Bernie Moreno from Ohio made a rare direct criticism: "We were elected by millions of voters, while you were appointed by one person. He does not want you to hold this position again." Moreno also accused Powell of causing the government to pay an additional $400 billion in interest each year by not cutting interest rates. In addition to monetary policy, Congress also pointed fingers at the high cost of the Federal Reserve headquarters renovation project. Committee Chairman, Republican Senator Tim Scott, questioned Powell, stating that the Federal Reserve is carrying out a "luxurious renovation" of two office buildings in downtown Washington, with expenses rising from the original estimate of $1.9 billion to $2.5 billion. In response, Powell stated that many reports about the renovation content from outside are not accurate. "There is no VIP restaurant, no new marble, no special elevators, the existing elevators are very old. There are no water features, rooftop beehives, or gardens." Powell said that although the project costs have increased, the reports are exaggerated and misleading.