Federal Reserve chief Jerome Powell makes a case for rate cuts
- 4 days ago
The Federal Reserve’s chairman, Jerome Powell has sealed the case for U.S. banks to slash interest rates.
According to Powell the U.S. economy is still vulnerable to global uncertainties, despite a strong job report in June and a ceasefire in the current trade war with Beijing.
“Economic momentum appears to have slowed in some major foreign economies, and that weakness could affect the US economy. Moreover, a number of government policy issues have yet to be resolved, including trade developments, the federal debt ceiling, and Brexit. And there is a risk that weak inflation will be even more persistent than we currently anticipate.”
Powell’s statements to Congress were delivered as investors are betting that policymakers will move as early as late July to cut its main interest rate by at least 25 basis points from its current level of 2.25% to 2.5%.
Source: Smart Trend Team