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Powell Says Fed Will Aid Economy But No Clear Hint on Rates

Federal Reserve Chairman Jerome Powell said Friday that President Donald Trump's trade wars have complicated the Fed's ability to set interest rate policies but offered no clear signal about further interest rate cuts.Speaking to a gathering of central bankers in Jackson Hole, Wyoming, Powell reiterated that the Fed "will act as appropriate'' to sustain the expansion - phrasing that analysts see as suggesting rate cuts. But the Fed chairman didn't give financial markets explicit guidance on whether or how many rate cuts might be coming the rest of the year.The Fed cut rates last month for the first time in a decade, and financial markets have baked in the likelihood of more rate cuts this year.The outlook for the U.S. economy, Powell said, remains favorable but continues to face risks. He pointed to increasing evidence of a global economic slowdown and suggested that uncertainty from Trump's trade wars has contributed to it.Powell's speech comes against the backdrop of a vulnerable economy, with the financial world seeking clarity on whether last month's rate decision likely marked the start of a period of easier credit.The confusion only heightened in the days leading to the Jackson Hole conference, at which Powell gave the keynote address. Minutes of the Fed's July meeting released Wednesday showed that although officials voted 8-2 to cut their benchmark rate by a quarter-point, there was a wider divergence of opinion on the committee than the two dissenting votes against the rate cut had indicated.The minutes showed that two Fed officials favored a more aggressive half-point rate cut, while some others adopted the polar opposite view: They felt the Fed shouldn't cut rates at all.The minutes depicted the rate cut as a "mid-cycle adjustment," the phrase Powell had used at his news conference after the rate cut. That wording upset traders... If you wish to read this full breaking news headline, plus more articles from around Thailand and Asia like, Powell Says Fed Will Aid Economy But No Clear Hint on Rates, simply click on 'Read full story' below, but 1st please give us a 'LIKE' or 'SHARE' before you leave. Thank you Powell Says Fed Will Aid Economy But No Clear Hint on Rates

 

 

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Published By: VOA NEWS - Friday, 23 August

 

 

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