The House Financial Services Committee shapes U.S. banking and financial policy as inflation tests lawmakers’ resolve and the Fed’s path.
Stocks and bonds markets are reacting to rising rate expectations and anticipated inflation data. Traders assess whether the Fed will hike later this month as yields shift across the curve, led by the two-year and influenced by oil prices and geopolitical tensions.
The CPI has cooled to 3.5% year over year in June and fell 0.4% for the month, driven by lower energy costs, while core inflation has held at about 2.6%. Markets are watching for how a renewed Strait of Hormuz tension and higher oil prices may influence policy.
Federal Reserve Chairman Kevin Warsh has told Congress the Fed’s top objective is restoring price stability and reducing inflation, while noting AI-driven investment is reshaping the economy. Inflation remains a central concern, with mixed signals on rate paths as markets react to new data.