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The House Financial Services Committee, led by Chairwoman Maxine Waters, has called for Federal Reserve Chair Jerome Powell to testify before the committee soon. The request comes amid ongoing scrutiny of the Fed's recent monetary policy decisions, including its decision to cut interest rates in July. The committee aims to assess the Fed's strategy for managing inflation, employment, and economic growth amid global uncertainties. Powell's testimony could provide clarity on the central bank's future rate path and its response to potential economic headwinds. This development is significant for global markets as the Fed's policy direction directly impacts U.S. interest rates, which influence capital flows, currency valuations, and asset prices worldwide. Traders will closely watch Powell's remarks for hints about the Fed's stance on inflation control and economic stability. A dovish or hawkish tilt in his testimony could trigger volatility in equity, bond, and foreign exchange markets. For MENA investors, the Fed's policy trajectory affects Gulf economies through trade, investment, and financial linkages. A prolonged period of low U.S. rates could bolster Gulf equity markets and real estate sectors. Investors should monitor Powell's comments on inflation trends, labor market data, and global economic risks in the coming weeks for directional cues.
