Federal Reserve Board Chairman Jerome Powell told Congress on Wednesday that passage by Congress of the pending US-Mexico-Canada trade agreement (USMCA) would bolster the United States' economy at a time of uncertainty due to trade tensions and a slowdown in the economies of other nations
WASHINGTON (Pakistan Point News / Sputnik - 10th July, 2019) Federal Reserve board Chairman Jerome Powell told Congress on Wednesday that passage by Congress of the pending US-Mexico-Canada trade agreement (USMCA) would bolster the United States' economy at a time of uncertainty due to trade tensions and a slowdown in the economies of other nations."I wouldn't take a position on the details of the USMCA, but I will say that having it pass would remove a real bit of the uncertainty that is weighing on the outlook and I think it would be quite a positive thing from that standpoint," Powell told the US House of Representatives Financial Services Committee.
Although the economy remains in good shape, growth in the second quarter has eased from an annual rate of 3.1 percent in the first three months - in part due to a slowdown in investment by businesses.
"The slowdown in business fixed investment may reflect concerns about trade tensions and slower growth in the global economy," Powell told the panel.
Consumer spending, which accounts for about 70 percent of the US economy remained strong during the second quarter, unemployment continues to hover near a 50 year low and wages are increasing, especially for low-paid workers, Powell said.
But Powell cited a slowdown of business investment, which accounts for much of the remaining 30 percent, as one reason that some members on the Federal Reserve's interest-rate-setting Open Market Committee have begun calling for a rate cut.
