U.S. Federal Reserve chair Jerome Powell is set to testify before the Senate Banking Committee on Jul. 9. This will be his semiannual testimony on monetary policy and comes at a time when calls for interest rate cuts are growing.

What Happened: Powell’s testimony is expected to cover a wide range of topics, including interest-rate policy and the state of the banking system. The following day, he is likely to deliver the same testimony at the House Financial Services Committee, Reuters reported on Tuesday.

These hearings are known to be extensive, with lawmakers from both sides of the aisle posing questions to Powell. Powell, who was initially appointed as Fed Chair by former President Donald Trump and reappointed for a second term by President Joe Biden, has consistently emphasized the central bank’s independence from political influence.

Despite calls from Democrats, including Sen. Sherrod Brown (D-Ohio), the committee’s chair, for a rate cut to make homes more affordable, the Fed has indicated it may only reduce borrowing costs once this year. This decision is contingent on a gradual decrease in inflation and no significant disruptions in the labor market.

Last week, the Federal Reserve maintained the policy rate within the 5.25%-5.5% range and indicated it might reduce borrowing costs only once this year.

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Why It Matters: The upcoming testimony by Powell comes at a critical juncture for the U.S. economy. Recent data shows that May’s inflation was softer than expected, with a core measure reading of 3.4% and a headline rate of 3.3%. This has led some economists, including Mohamed El-Erian, to argue that there is a solid case for a rate cut soon.

However, Powell has faced criticism from lawmakers like Sen. Elizabeth Warren (D-Mass.) for the Federal Reserve’s ethics policies and handling of insider trading issues. These criticisms could resurface during his testimony.

On Monday, investor Steve Eisman dismissed fears of an impending recession, citing the U.S. economy’s resilience and strong market performance driven by investments in artificial intelligence and infrastructure.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote