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 Kolkata 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 Kolkata Sun.
More InformationMADRID, Spain: Liverpool footballer Diogo Jota and his younger brother, André Silva, have died in a car accident in Spain. Spanish...
LONDON, U.K.: An unrelenting heatwave sweeping across Europe has pushed early summer temperatures to historic highs, triggering deadly...
President Donald Trump's plans to build a space-based Golden Dome missile defense shield have drawn immediate criticism from China,...
NEW YORK CITY, New York: Paramount has agreed to pay US$16 million to settle a lawsuit brought by U.S. President Donald Trump over...
LONDON, U.K.: British Prime Minister Keir Starmer won a vote in Parliament this week to move ahead with changes to the country's welfare...
WASHINGTON, D.C.: President Donald Trump will meet Israeli Prime Minister Benjamin Netanyahu at the White House on Monday. President...
WASHINGTON, D.C.: President Donald Trump says the United States could soon reach a trade deal with India. He believes this deal would...
DHARAMSHALA, India: The Dalai Lama is set to address a significant three-day conference of Buddhist leaders this week, coinciding with...
Buenos Aires [Argentina], July 6 (ANI): Prime Minister Narendra Modi and Argentine President Javier Milei discussed enhancing collaboration...
Buenos Aires [Argentina], July 6 (ANI): The Ministry of External Affairs on Saturday (local time) emphasised India's great interest...
Chennai (Tamil Nadu) [India], July 6 (ANI): Launching a scathing attack on the Centre, Tamil Nadu Chief Minister MK Stalin said the...
Birmingham [UK], July 6 (ANI): England batting coach Marcus Trescothick claimed that they are willing to play for a draw in the ongoing...