Federal Reserve Chairman Jerome Powell says that 'many' Fed officials believe a weakening global economy and rising trade tensions have strengthened the case for looser interest-rate policies.
FILE - In this June 19, 2019, file photo Federal Reserve Chairman Jerome Powell concludes a news conference following a two-day Federal Open Market Committee meeting in Washington. On Wednesday, July 10, the Federal Reserve releases minutes from its June meeting when it left rates unchanged.
Powell said that since Fed officials met last month, “uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook.” Meanwhile, inflation has fallen farther from the Fed’s target. Powell made no mention of the president’s criticism in his prepared testimony, but he did thank Congress for the “independence” it has given the central bank to operate.
In his testimony, Powell said the economy has performed “reasonably well” over the first half of the year. But he noted that “crosscurrents, such as trade tensions and concerns about global growth, have been weighing on economic activity and the outlook.” Investors, as tracked by the CME Group, have assigned a 100% likelihood to a rate cut when the Fed meets in three weeks. Until very recently, the chance of a modest quarter-point cut was put at 70% and a steep half-point cut at 30%.
And last week the government reported that after a tepid job gain in May, U.S. employers sharply stepped up their hiring in June, an indication of the economy’s durability.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Powell May Face More Questions on Fed’s Approach to Climate Change RisksFed Chairman Jerome Powell’s views on interest rates and the economy should be the main focus as he testifies before Congress this week, but he also may field questions on what the central bank is doing to address climate change risks.
Read more »
Fed Chairman Jerome Powell’s Approach to Interest-Rate Policy Wins Bipartisan BackingPresident Trump’s relentless public criticism of the man he picked to run the Federal Reserve, Jerome Powell, isn’t broadly shared by lawmakers who confirmed the central bank leader to his post last year.
Read more »
Dow futures lower ahead of Fed's Powell speechU.S. stock index futures were lower on Tuesday morning, as traders waited to hear from Federal Reserve Chairman Jay Powell.
Read more »
European stocks seen slightly higher as investors await Powell testimonyEuropean stocks are seen slightly higher Wednesday as investors await a testimony from U.S. Federal Reserve Chairman Jerome Powell in the hope for hints on imminent interest rate cuts from the central bank.
Read more »
Powell Testimony to Be Watched Closely for Clues on RatesFed Chairman Jerome Powell has a prime opportunity to either reset or ratify expectations of an interest-rate cut during two days of testimony on Capitol Hill starting today.
Read more »