US Central Bank Head Signals Imminent Interest Rate Cuts

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.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Cape Town Express.

More Information

null in null

International

Section

Turkey, France battle wildfires amid early Europe heatwave

ISTANBUL/PARIS/BRUSSELS: As searing temperatures blanket much of Europe, wildfires are erupting and evacuation orders are being issued...

Venetians protest Bezos wedding with march through the town

VENICE, Italy: Over the weekend, hundreds of protesters marched through the narrow streets of Venice to voice their opposition to billionaire...

New French law targets smoking near schools, public spaces

PARIS, France: France is taking stronger steps to reduce smoking. A new health rule announced on Saturday will soon ban smoking in...

Trump hints at DOGE investigation of Musk subsidies

WASHINGTON, DC - U.S. President Donald Trump on Tuesday claimed Elon Musk's success has been built on government subsidies. Without...

Native leaders, activists oppose detention site on Florida wetlands

EVERGLADES, Florida: Over the weekend, a diverse coalition of environmental activists, Native American leaders, and residents gathered...

Beijing crowds cheer AI-powered robots over real soccer players

BEIJING, China: China's national soccer team may struggle to stir excitement, but its humanoid robots are drawing cheers — and not...

South Africa

Section