The US Federal Reserve could cut interest rates later this month, remarks from its chairman Jerome Powell have suggested.
Speaking before the House of Representatives Financial Services Committee, the Fed chairman said that concerns about US trade policy and a weak global economy “continue to weigh on the US economic outlook”.
Mr Powell repeated assertions that the Fed will act “as appropriate” to sustain economic growth in the US, which could including slashing interest rates at the end of July.
He added that uncertainty over how long the US-China trade war would continue had led to a downturn in business investment, a crucial pillar of economic growth. This, combined with weak inflation and slower growth in other major economies, we weighing on the Fed’s outlook.
Mr Powell said: “Apparent progress on trade turned to greater uncertainty, and our contacts in business and agriculture reported heightened concerns over trade developments.
“There is a risk that weak inflation will be even more persistent than we currently anticipate.”
Though the dollar immediately dropped Read More
Source:: iNews – Business