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Fed's Powell says U.S. expansion is 'sustainable'
DENVER (Reuters) - Federal Reserve chairman Jerome Powell on Tuesday flagged openness to further rate cuts to fend off global economic risks, repeating that the central bank will act "as appropriate" amid an economy that he said is likely to continue to expand."This feels very sustainable," Powell said in Denver at the annual meeting of the National Association of Business Economics. "Clearly things are slowing a bit," he said, noting that it’s normal for long expansions to have such periods. Twice in the 1990s, he said, the economy similarly downshifted, only to gain steam once the Fed cut interest rates a few times. The Fed two interest rates this year, in July and September, were made in that spirit and have helped maintain a "favorable" outlook for jobs and inflation, Powell said. The U.S. economy "may just be gathering itself - there’s no reason why the expansion can’t continue," he added. Posted by: Besoeker 2019-10-09 |
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