Wall Street will closely observe Powell this week to uncover clues as to why and when the Federal Reserve will cut interest rates.

As Federal Reserve officials hint at keeping rates unchanged, investors and economists will be focusing on Chairman Jerome Powell this week for clues on what factors and timing may ultimately prompt the central bank to take action. The Fed has held steady in four consecutive policy meetings, potentially setting off another round of criticism from President Donald Trump. However, policymakers have made it clear that major issues surrounding tariffs, immigration, and taxes need to be addressed by the White House before they act. The Israeli attack on Iranian nuclear facilities has also introduced another element of uncertainty to the global economy. Meanwhile, the overall performance of the U.S. economy remains healthy, or is slowly cooling, but few expect the Fed to adjust rates in the near term. According to futures pricing, investors are betting that the Fed will not lower borrowing costs until at least September. "With no urgency to cut rates right now, the safest thing to do is wait and see," said Seema Shah, Chief Global Strategist at Principal Asset Management.