DJI: Dow Jones Ekes Out Tiny Gain as Powell Talks Tariffs, Musk, and Rate Pauses

Fed boss spoke to Congress Tuesday and discussed Elon Musk’s role in government and whether he tried to access Fed systems.

✈️ Dow Gains Just a Little

• The Dow Jones Industrial Average DJI edged higher Tuesday by a modest 0.3% increase, or 123 points, just as Federal Reserve chair Jay Powell was discussing the US economy and the White House with Congress. The S&P 500 finished the session flat and the Nasdaq tumbled 0.4%.
• Speaking at his semi-annual meeting with lawmakers, Jay Powell spent more than two hours explaining monetary policy and laying out the way forward. With some spicy details.

🏛️ ”Absurdly Overstaffed” Fed

• In response to a question whether Elon Musk or his DOGE team had tried to access Fed systems, the top central banker said he believes the billionaire hasn’t tried to tap into the Fed’s payment systems. Musk recently said that the Fed is “absurdly overstaffed” and suggested he might look into its expenses.
• "No, I would say that, you know, overworked maybe, not overstaffed. Everybody at the Fed works really hard," Powell said. He also noted that the President doesn’t have the power to fire Fed officials.

🧐 Inflation Data Ahead

• And finally, Powell addressed the topic of interest rates, saying there’s no “need to be in a hurry” about cutting borrowing costs. “We know that reducing policy restraint too fast or too much could hinder progress on inflation.” On Wednesday, Powell is heading to speak to the House Financial Services Committee for his second day of testifying.
• But before that, inflation data will show whether price pressures eased in January. Perhaps not — at least according to expectations. Wall Street is eyeballing the CPI figure to show a 2.9% year-over-year increase for the past month.