Powell keeps Wall St. rate cut hopes intact

Video Credit: Reuters Studio
Published on September 6, 2019 - Duration: 01:46s

Powell keeps Wall St. rate cut hopes intact

The Federal Reserve will act "as appropriate" to keep the U.S. economy going amid a growing threat the U.S trade war with China could further slow the economy, Fed Chairman Jerome Powell said on Friday.

Conway G.

Gittens has the details.


Powell keeps Wall St. rate cut hopes intact

An escalating U.S.-China trade war is putting increased pressure on Federal Reserve Chairman Jerome Powell to act, and in a Friday speech in Switzerland he said this: SOUNDBITE (ENGLISH) FEDERAL RESERVE CHAIRMAN JEROME POWELL, SAYING: "We don't do trade...it's not a responsibility of the Fed but I think it is the case that uncertainty around trade policy is causing some companies to hold back now on investment and so our obligation is to use our tools to support the economy, and that's what we'll continue to do." Investors heard that as a signal Powell is worried enough to cut interest rates, but not by much... holding to expectations the Fed will go ahead with a quarter-point ease.

Powell noted that U.S. consumer spending is strong, but that a slowdown in business spending is hurting the global economy.

He pledged to "act as appropriate" to make sure America's record-long economic expansion stays on track.

SOUNDBITE (ENGLISH) FEDERAL RESERVE CHAIRMAN JEROME POWELL, SAYING: "Our main expectation is not at all that there'll be a recession.

I did mention though that there are these risks and we're monitoring them very carefully and we're conducting policy in a way that we'll address them.

But no, I wouldn't see a recess as the most likely outcome for the United States or for the world economy for that matter." The decision to cut rates will come down to voting members of Federal Reserve Board.

But that committee is split.

Some on the Fed look at the strength in the U.S. economy and question whether rates need to be lowered at all, while others look at the trade war between the U.S. and China and want more than a quarter-point rate cut.

President Trump, who nominated Powell for the job and chastises him seemingly at every turn, criticized the Fed for being too fast at raising rates and too slow at lowering them.

Which way will the Fed go?

Powell and his fellow committee members will make a decision at a meeting later this month.

You are here

💡 One News Page Knowledge: Other News Mentions

Wall Street

Street in Manhattan, New York
Latest sales and profit figures from America's big tech companies exceed Wall Street expectations.
Credit: BBC News - Published 2 hours ago

Asian markets are mostly lower Thursday in the aftermath of Wall Street’s big losses a day earlier, sparked by growing pessimism over the...
13 hours ago • WorldNews
Microsoft has reported quarterly earnings that beat Wall Street expectations, as it continued to weather the coronavirus pandemic amid increased demand for its..
2 days ago • WorldNews
The shockwaves from Monday’s major losses on Wall Street are reverberating throughout Asian financial markets Tuesday. The Nikkei index in Tokyo lost eight..
3 days ago • WorldNews

Donald Trump

45th president of the United States
Conservationists say the species is still "functionally extinct" and said the move to delist them defies "science and common sense."
Credit: CBS News - Published 10 minutes ago

According to the latest CBS Battleground tracker, Joe Biden has the lead among Latino voters but President Trump has the lead among the senior population in..
Credit: CBS News - Published 34 minutes ago

President Trump and Joe Biden are facing off in Florida, where a record 7 million residents have already voted. Ed O’Keefe reports.
Credit: CBS News - Published 34 minutes ago

In his first television interview since President Trump fired him last year, Dan Coats, the former Director of National Intelligence, said he's worried about..
Credit: CBS News - Published 42 minutes ago

President Trump is celebrating the third-quarter economic rebound from the low point brought on by the coroanvirus pandemic. CBSN political reporter Caitlin..
Credit: CBS News - Published 56 minutes ago

Chair of the Federal Reserve

American government office


Federal republic in Central Europe
Swiss startup Climeworks has been a pioneer in efforts to capture carbon dioxide from the air and store it in underground rock formations. | Image courtesy of..
1 day ago • The Verge
Terrorist attacks inspired by the Islamic State group remain likely in Europe, with Switzerland not invulnerable to such threats, says the Federal...
2 days ago • WorldNews
The "unique" antique was taken by an organised crime group from a collection in Switzerland, police said.
Credit: BBC News - Published 6 days ago

A large Trump rally in Ocala, Florida, looked nothing like a Zurich music festival, though social posts claim otherwise.
Credit: USATODAY.com - Published 1 week ago

Related videos from verified sources

Fed cuts interest rates 01:41
Video credit: Reuters Studio - Published on September 18, 2019 

Jim Cramer Takes a Look Ahead to the Federal Reserve Meeting 01:27
Video credit: The Street - Published on September 13, 2019 

You might like