Powell Hints a Rate Cut is Coming

Written by Staff Writer

384px Jerome H. PowellFed Chairman Jerome Powell strongly hints a rate cut is comingCNN
"Federal Reserve Chairman Jerome Powell on Wednesday strongly hinted at a potential rate cut later this month, citing unresolved trade tensions and worries over the weakness of the global outlook. In prepared testimony ahead of his first appearance on Capitol Hill, Powell told House lawmakers that since the Fed's last interest-rate policy-setting meeting in June, two of the major forces that have the potential to drag down the US economy remain a concern.

'It appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the US economic outlook,' Powell will say at the hearing, according to his prepared remarks....Powell, the president's choice to run the world's most influential central bank, is facing considerable pressure to keep the US economy steady. Concerns are intensifying that Trump's tariff strategy may end up hurting global growth. Beyond a broader global slowdown, the Fed chair also named in his testimony a number of other risks facing the US economy including muted inflation, ongoing trade tensions and a looming debt ceiling crisis that has yet to be resolved by Congress. 'We are carefully monitoring these developments,' said Powell, who noted that the Fed now anticipates that 'weak inflation will be even more persistent that we currently anticipate.'"