Voice of America
10 Jul 2019, 23:35 GMT+10
U.S. Federal Reserve Chairman Jerome Powell is suggesting short-term interest rates could soon be cut as the global economy weakens and concerns persist over trade policy.
As he delivered the Fed's semi-annual monetary report to Congress Wednesday, Powell signaled the central bank might cut interest rates for the first time in nearly a decade.
Powell said "uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook."
He told the House Financial Services Committee the cuts could come when Fed officials meet later this month.
Powell said while the U.S. labor market remains strong and consumer spending has been stable, the business investment growth rate has "slowed notably."
He also noted that slower growth by some large foreign economies "could affect the U.S. economy."
The Fed's benchmark rate is currently in a range of 2.25% and 2.5% and some market observers predict the central bank will cut it by a quarter percentage point.
Trump, who is relying on a strong economy to help propel him to a second term in office next year, has called the Fed his biggest threat. Trump attacked the Fed when it increased rates four times last year, arguing they dampened U.S. economic growth and depressed the stock market.
Powell did not mention Trump's criticism as he delivered his prepared remarks, but he did thank lawmakers for the operational "independence" it has given to the Fed.
The Fed cuts interest rates when it determines there is a need to stimulate economic growth through lower financing costs, which can spark more borrowing and investing.
Get a daily dose of Haiti Sun news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Haiti Sun.
More InformationWASHINGTON, D.C.: President Donald Trump claimed he was unaware that the term shylock is regarded as antisemitic when he used it in...
PARIS, France: A strike by French air traffic controllers demanding improved working conditions caused significant disruptions during...
OMAHA, Nebraska: With Congress considering cuts totaling around US$1 trillion to Medicaid over the next decade, concerns are rising...
ROME, Italy: Quick thinking by emergency responders helped prevent greater devastation after a gas station explosion in southeastern...
WASHINGTON, D.C.: President Donald Trump is drawing praise from his core supporters after halting key arms shipments to Ukraine, a...
MOSCOW, Russia: This week, Russia became the first country to officially recognize the Taliban as the government of Afghanistan since...
HONG KONG: China has fired back at the European Union in an escalating trade dispute by imposing new restrictions on medical device...
NEW YORK, New York - Monday's trading session saw mixed performances across U.S. and global markets, with several major indices posting...
WASHINGTON, D.C.: The U.S. government has granted GE Aerospace permission to resume jet engine shipments to China's COMAC, a person...
DUBAI, U.A.E.: Saudi Aramco is exploring asset sales as part of a broader push to unlock capital, with gas-fired power plants among...
MILAN, Italy: Italian regulators have flagged four non-EU countries—including Russia—as carrying systemic financial risk for domestic...
NEW YORK CITY, New York: With just weeks to spare before a potential government default, U.S. lawmakers passed a sweeping tax and spending...