The first U.S. interest rate cut in ten years is likely to happen this month.
Federal Reserve Chairman Jerome Powell has pledged to “act as appropriate” to defend U.S. economic expansion against a challenging international backdrop.
Powell also brushed aside President Trump’s recent criticisms of his leadership of the Fed,… saying he wouldn’t resign,… even if Trump demanded he go.
Lee Seung-jae reports.
Testifying before the U.S. House Committee on Financial Services on Wednesday,… Federal Reserve Chairman Jerome Powell vowed to steer the strong U.S. economy through a fraught road of international trade spats and a global slowdown.
“The economy performed reasonably well over the first half of 2019, and the current expansion is now in its 11th year. However, inflation has been running below the FOMC symmetric two-percent objective, and crosscurrents, such as trade tensions and concerns about global growth, have been weighing on economic activity and the outlook.”
With that, Powell strongly hinted that a rate cut is coming down the line later this month.
If it happens, it will be the Fed’s first cut in a decade.
After Powell’s announcement,… the Dow rallied on Wednesday,… and the S&P 500 crossed the 3-thousand point mark for the first time in history.
Meanwhile, brushing aside repeated criticism from President Trump,… Powell insisted he would not step down even if Trump asked him to resign.
The Fed chief stressed that the law guarantees him a four-year term,… and he fully intends to serve it out.
But President Trump still appears to have got what he wanted, namely a rate cut.
Trump has long insisted lower rates will help the U.S. economy grow even faster… as he prepares to try and win re-election in 2020.