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WASHINGTON (Reuters) -The head of a new congressional panel gearing up to strengthen Capitol Hill's oversight of the Federal Reserve plans a broad review of how the U.S. central bank makes its interest rate decisions, including whether controlling inflation should be prioritized over safeguarding employment. "A substantial number of my Financial Services Committee colleagues and the chairman want to discuss that issue," Representative Frank Lucas, an Oklahoma Republican, told Reuters in an interview on Monday ahead of next week's first hearing of the Monetary Policy, Treasury Market Resilience, and Economic Prosperity Task Force. The Fed's dual mandate - to foster price stability and maximum employment - was imposed by Congress in 1978, and right now it is close to both goals: The unemployment rate is 4% and inflation has eased to 2.6% relative to a 2% target, a far better outcome than many feared.

WASHINGTON (Reuters) -U.S. Treasury Secretary Scott Bessent on Tuesday argued the U.S. economy is more fragile under the surface than economic metrics suggest and vowed to "re-privatize" growth by cutting government spending and regulation. In his first major economic policy address since taking office, Bessent said that interest rate volatility, sticky inflation and reliance on the public sector for job growth have hobbled the U.S. economy despite positive top-line GDP growth and low unemployment. In the wide-ranging speech at an investment conference hosted by the Australian embassy in Washington, Bessent blamed "prolific overspending" under former President Joe Biden and regulations that have hindered supply-side growth as the main drivers of "sticky inflation."

Bank of America expects the Federal Reserve to hold interest rates steady this year and into next year, CEO Brian Moynihan said on Tuesday. "It takes multiple years to squeeze inflation out," and the Fed's efforts to tame inflation will most likely last until 2026, Moynihan told a conference in Washington. Fed policymakers have kept rates unchanged as they seek to move inflation toward a 2% target.

The American consumer is getting worried about the economy.

Contractors who face stop work orders from the Trump administration’s funding freeze should take action, legal experts say.

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