09:07 AM EDT, 06/24/2025 (MT Newswires) -- The Federal Open Market Committee has time to see how the economy progresses before deciding on rate reductions, Federal Reserve Chairman Jerome Powell is expected to say Tuesday in prepared testimony before the House Financial Services Committee.

"For the time being, we are well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance," Powell is due to say in his prepared remarks.

The effects of tariffs on inflation could just be a one-time increase in price levels or could be more persistent, Powell says, but there is considerable uncertainty over the exact impact.

"The FOMC's obligation is to keep longer-term inflation expectations well anchored and to prevent a one-time increase in the price level from becoming an ongoing inflation problem," Powell is due to say. "As we act to meet that obligation, we will balance our maximum-employment and price-stability mandates, keeping in mind that, without price stability, we cannot achieve the long periods of strong labor market conditions that benefit all Americans."

Powell will answer questions from the Committee after he delivers his statement at 10:00 am ET and is due to speak before the Senate Banking Committee at 10:00 am ET Wednesday.