Home / Business / Powell: US central bank will act correctly if needed | 06/25/19

Powell: US central bank will act correctly if needed | 06/25/19

Fed chairman repeated his general openness to interest rate cuts.

The Fed assesses whether existing uncertainties continue to weigh on the economic outlook and justify light monetary policy said Jerome Powell on Tuesday in New York. It will therefore examine new tasks carefully and act appropriately to support the economic expansion. He repeated his statements after Fed's interest rate decision yesterday Wednesday.

Business disputes have created business security and growth problems, according to Powell. These have recently increased significantly. The Group's confidence seems to have fallen and this is increasingly reflected in the financial data.

The financial markets are now convinced that the Fed will cut its interest rate by 0.25 percentage points in July. A number of central bank members would increasingly see the reasons for a cut in interest rates Powell said. Central banks prefer preventive measures worldwide. But one should not overreact in the short term, Powell said. You should wait first, because the changes had come quickly.

Powell did not speak directly against the last once again violent criticism of US President Donald Trump . However, he noted that central banks in developed countries are independent. The Fed would behave like a stubborn child "if we need reductions and ease," wrote Trump on Twitter on Twitter. The central bank did not know what it did.


Source: SAUL LOEB / Contributors / Getty Images, Sascha Burkard / Shutterstock.com, isak55 / Shutterstock.com

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