Sunday, 17 November 2019
Jakarta
--:--
Tokyo
--:--
Hongkong
--:--
New York
--:--
Powell: U.S. in 'favorable' place, Fed will 'act as appropriate'
Friday, 23 August 2019 21:23 WIB | FISCAL & MONETARY |Federal ReserveThe Fed

The U.S. economy is in a "favorable place" and the Federal Reserve will "act as appropriate" to keep the current economic expansion on track, Fed chair Jerome Powell said on Friday in remarks that gave few clues about whether the central bank will cut interest rates at its next meeting or not.

The chair, under pressure from President Donald Trump to cut rates soon and deeply, listed a series of economic and geopolitical risks that the Fed is monitoring ” many of them, Powell noted, linked to the administration's trade war with China and other countries.

But "the U.S. economy has continued to perform well overall," Powell said in keynote remarks at an annual Fed economic symposium at this mountain retreat. "Business investment and manufacturing have weakened, but solid job growth and rising wages have been driving robust consumption and supporting moderate overall growth."

If the trade wars have disrupted business investment and confidence and contributed to œdeteriorating global growth, Powell said the Fed could not set all that right through monetary policy.

There are "no recent precedents to guide any policy response to the current situation," Powell said, adding that monetary policy "cannot provide a settled rulebook for international trade."

Between that, the possibility of a hard "Brexit," tension in Hong Kong, an economic slowdown in places like Germany and other overseas troubles, Powell said the Fed needed to "look through" short-term turbulence and focus on how the U.S. is performing.

Powell did note that rate cuts in the 1990s helped keep an expansion intact.

But the overall tone of his statement may disappoint investors expecting the Fed the cut rates at its September meeting and possibly several more times this year. The central bank reduced rates in July in what Powell referred to as a mid-cycle adjustment.

It is also likely to disappoint Trump, both in focusing on the impact that trade uncertainty is having on the global economy, and in not giving a clear signal that more cuts are coming.

The Fed must "look through what may be passing events, focus on how trade developments are affecting the outlook, and adjust policy to promote our objectives" of 2 percent inflation and strong employment.

Source : Reuters

RELATED NEWS
FOMC Chairman Powell testimony: Baseline outlook for US economy remains favourable...
Wednesday, 13 November 2019 23:14 WIB

In remarks prepared for delivery to the Joint Economic Committee of Congress on Wednesday, Jerome Powell, Chair of the Board of Governors of the Federal Reserve System, will reiterate that the baselin...

Japanese PM Abe: Want extra budget to assist economic recovery...
Tuesday, 12 November 2019 11:40 WIB

Fresh comments are crossing the wires from the Japanese PM Shinzo Abe, as he expresses the need for an extra budget to assist the economic recovery. Nothing further is reported on the same. Last wee...

RBA Sees Moderate Recovery Persisting, But No Wage-Growth Gains...
Friday, 8 November 2019 07:58 WIB

Australia™s central bank maintained its glass half full view, reinforcing that the economy has emerged from its soft patch, while forecasting no acceleration in wage growth and core inflation barely...

Carney speech: Trade Concerns Can Reduce Global Supply Capacity and Growth...
Thursday, 7 November 2019 21:06 WIB

Following the Bank of England's decision to keep its policy rate unchanged at 0.75%, Governor Mark Carney is delivering his remarks on the monetary policy outlook in a press conference with key quotes...

Bank of England Leaves Policy Rate Unchanged at 0.75% in November as Expected...
Thursday, 7 November 2019 19:14 WIB

In a widely expected decision, the Bank of England's Monetary Policy Committee held the policy rate unchanged at 0.75% with a unanimous vote. The asset purchase facility remained steady at €435 bill...

LATEST NEWS
Hong Kong Stocks Close Flat, Ending Tough Week (Review)

Hong Kong shares finished barely moved Friday, bringing an end to a tumultuous week that has seen the city crippled by violent protests, which show no sign of abating. The Hang Seng Index inched up 2.97 points to 26,326.66. The benchmark Shanghai...

Trade Hopes Propel Wall Street to Records; Healthcare Climbs

Wall Street's main stock indexes closed at record levels on Friday, fueled by fresh optimism over a potential calming of U.S.-China trade tensions and by big gains in shares of healthcare companies. The Dow Jones Industrial Average rose 221.71...

Oil gains 1.7%, shrugging off rising supply concerns

Oil futures gained nearly 2% on Friday as comments from a top U.S. official raised optimism for a U.S.-China trade deal, but worries about increasing crude supplies capped prices. Benchmark Brent crude gained $1.03, or 1.7%, to settle at $63.31 a...

POPULAR NEWS
Gold Tallies Back-To-Back Gains as Treasury Yields Retreat
Friday, 15 November 2019 02:06 WIB

Gold futures settled higher on Thursday, building on gains from a day earlier as weakness in U.S. benchmark stock indexes and a drop in yields on...

Gold Pares Weekly Gain After Kudlow's Comments on Deal
Friday, 15 November 2019 09:31 WIB

Gold declined, trimming its fourth weekly gain in five, after White House economic adviser Larry Kudlow signaled progress on a trade deal with...

Gold Claws Back Ground as Treasury Yields Retreat
Thursday, 14 November 2019 21:02 WIB

Gold futures were modestly higher Thursday, finding support as yields on government debt continue to fall, lowering the opportunity cost of holding...

Gold futures fall for the session, gain 0.4% for the week
Saturday, 16 November 2019 02:01 WIB

Gold futures declined on Friday, as optimism that phase one of a U.S.-China trade deal will soon be reached, and strength in the U.S. stock market...