Fed Chair Powell’s testimony to be watched for any hint on rate-cut timing

By CHRISTOPHER RUGABER
AP Economics Writer

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell begins two days of testimony to Congress on Wednesday, with two issues likely to dominate the questions he’ll face: When will the Fed start cutting interest rates, and by how much? A rate reduction would likely lead, over time, to lower rates for mortgages, auto loans, credit cards and many business loans. Most analysts and investors expect a first rate cut in June, though May remains possible. Fed officials have projected that they will cut rates three times this year. Powell’s semi-annual testimony coincides with intensified efforts by the Biden administration to stem public frustration with inflation.