UNITED STATES, WASHINGTON (OBSERVATORY) — Federal Reserve Chairman Jerome Powell hinted at the possibility of a new cut in interest rates.
In his speech at the panel discussion “Economic Perspectives and Monetary Policy”, organized by the Swiss Institute for International Studies at the University of Zurich, Powell said several times that the Fed “does not expect a recession” in the United States. At the same time, according to him, the American Central Bank is ready to lower interest rates.
“We do not predict and do not expect a recession. In the most likely scenario, we expect moderate economic growth, a strong labor market and continued inflation. Our main expectation is that there will be no recession [in the US economy].
During this year, the Fed I was ready to cut interest rates. It supported the economy. This is one of the reasons why the prospects are still favorable.
Our responsibility is to use various tools to support the economy, and we will continue to do so. We will we will continue to act as necessary to sustain economic growth. ”
The next meeting of the Federal Open Market Committee (FOMC) of the Fed will be held September 17-18. Powell had previously stated that the Fed “will take the necessary measures to maintain economic growth.”
This statement was made as part of his report to the Financial Services Committee of the House of Representatives on July 10. After that, at a meeting held on July 30–31, the Fed announced a rate cut of 0.25%.
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