The US central bank is monitoring the impact of global trade developments and is ready to take steps to alleviate any harm that ongoing tariff disputes might cause to the economy, Federal Reserve Chairman Jerome Powell said in a speech on Tuesday
WASHINGTON (Pakistan Point News / Sputnik - 04th June, 2019) The US central bank is monitoring the impact of global trade developments and is ready to take steps to alleviate any harm that ongoing tariff disputes might cause to the economy, Federal Reserve Chairman Jerome Powell said in a speech on Tuesday."We do not know how or when these issues (trade disputes) will be resolved. We are closely monitoring the implications of these developments for the US economic outlook and, as always, we will act as appropriate to sustain the expansion," Powell said at the Chicago Federal Reserve.
Powell did not directly reference interest rates, but his comments were widely interpreted to mean that the Federal Reserve could adjust its monetary policy if the trade wars dampen economic growth.
President Donald Trump has repeatedly criticized the Federal Reserve for refusing to lower interest rates. The Fed last month maintained the benchmark interest rate at 2.25 percent to 2.5 percent.
In June 2018, Trump announced 25 percent tariffs on $50 billion worth of Chinese imports in a bid to balance the trade deficit between the US and China. Since then the sides have exchanged several rounds of duties.
