DJIA26112.53
LIVE22.92(0.09%)
NDX7526.52
LIVE47.41(0.63%)

Powell Signals Openness to Cut Rates If Needed on Trade Tension


Tuesday, 4 June 2019 23:17 WIB

Federal ReserveThe FedJerome Powell


c_740_198_16777215_00_images_assets_ECONOMY2_181127-jerome-powell.jpg

Federal Reserve Chairman Jerome Powell signaled an openness to cut interest rates if necessary, pledging to keep a close watch on fallout from a deepening set of disputes between the U.S. and its largest trading partners.

Referring to “trade negotiations and other matters,” Powell said that “we do not know how or when these issues will be resolved,” according to the text of a speech he’s set to deliver Tuesday in Chicago.

“We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2% objective,” Powell said in opening remarks at a conference at the Chicago Fed.

Investors have aggressively increased bets the Fed will cut interest rates this year after President Donald Trump widened ongoing trade tensions when he threatened last week to slap new tariffs on Mexico unless it stemmed migrant flows to the U.S. The yield on 10-year U.S. Treasuries Monday fell below 2.1%, the lowest since September 2017.

Powell’s speech was dedicated mostly to the Fed’s yearlong goal of reviewing its monetary policy strategies, tools and communication practices.

“With the economy growing, unemployment low, and inflation low and stable, this is the right time to engage the public broadly on these topics,” Powell said.

Source : Bloomberg


RELATED NEWS

POPULAR NEWS

DISCLAIMER

Seluruh materi atau konten yang tersaji di dalam website ini hanya bersifat informatif saja, dan tidak dimaksudkan sebagai pegangan serta keputusan dalam investasi atau jenis transaksi lainnya. Kami tidak bertanggung jawab atas segala akibat yang timbul dari penyajian konten tersebut. Semua pihak yang mengunjungi website ini harus membaca Terms of Service (Syarat dan Ketentuan Layanan) terlebih dahulu dan dihimbau untuk melakukan analisis secara independen serta memperoleh saran dari para ahli dibidangnya.