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 Irish 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 Irish Sun.
More InformationWASHINGTON, D.C.: In the past 20 years, China has become the world's top shipbuilder, producing more than half of all commercial ships....
ALBANY, New York: New York fired over 2,000 prison guards this week for not returning to work after a weeks-long strike that disrupted...
BEIJING, China: China has announced new tariffs on Canadian agricultural and food products in retaliation for Canada's recent duties...
ENNIS, Texas: A man died, and three of his family members were injured when their RV flipped several times during a strong storm at...
One halcyon spring day in 1903, the 69-year-old anatomist and naturalist Dr. James Bell Pettigrew sat at the top of a sloping street...
WEST PALM BEACH, Florida: Air Force fighter jets have stopped a civilian plane that entered restricted airspace near Donald Trump's...
DUBLIN, Ireland: Three significant projects focused on marine conservation and climate change adaptation have received over 24 million...
BERLIN, Germany: Volkswagen is set to cut 1,600 jobs at its Cariad software division by the end of the year, affecting nearly 30 percent...
DUBLIN, Ireland: Dublin City Council and Cluid Housing have unveiled plans to transform a vacant site in Cabra into an affordable rental...
DUBLIN, Ireland: Mark Carney, Canada's incoming prime minister, has announced plans to renounce his Irish and British citizenships...
DUBLIN, Ireland: An all-female crew is embarking on a challenging Arctic expedition to raise awareness and funds for women's heart...
BRUSSELS, Belgium: The United States has withdrawn from the board of a U.N. climate fund designed to help poor countries deal with...