UNITED STATES, WASHINGTON (VOP TODAY NEWS) — Federal Reserve Chairman Jerome Powell said Friday that the Fed will take appropriate steps to ensure the US economy continues to expand despite the “significant risks” of slowing global growth.
In a speech in Wyoming, Powell said trade tensions were adding to the global slowdown, and his speech coincided with China’s decision to impose tariffs on $ 75 billion in US exports.
However, in his awaited speech, Powell explained that the central bank has only limited tools to counter the trade war. “The first weeks since the bank’s FOMC meeting in July were busy, starting with the announcement of new tariffs on imports from China,” he said.”.
“Prospects for global growth have been deteriorating since the middle of last year, and trade policy uncertainty seems to play a role in the global slowdown and in weak manufacturing and capital spending in the US,” he said.
The head of the US reserve, that his country’s economy is “in a good position now,” noting that and “given the high risks”, the Bank will act appropriately to maintain the continuation of economic expansion, but warned that “there are no specific fixed procedures for trade, There are no precedents for a proper response to the status quo. ”
But as Beijing stepped up its retaliatory measures in the trade war with Washington, he said the bank had no “specific measures” to deal with uncertainty, but he played down fears that increased stimulus could lead to higher inflation. Its height is not the problem of this era.
The trade war with China, initiated by President Donald Trump, has escalated in recent months, shrinking business confidence, declining investment, and significant volatility in global financial markets.
The US Federal Reserve lowered its benchmark interest rate last month for the first time in more than a decade, partly because of the expected effects of the trade war on economic growth.
This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.
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