Federal Reserve Chairman Jerome Powell signaled Friday (Aug. 23) that the central bank will cut interest rates again as soon as next month as the U.S. trade war with China and global economic turbulence continue to roil financial markets, according to a USA Today report.
“Based on our assessment of the implications of these developments, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2% objective,” Powell said in prepared remarks he planned to deliver at 10 a.m. ET at the Fed’s annual conference in Jackson Hole, Wyoming.
His words echo statements Powell and the Fed have made in recent months, but he prefaced them by noting that global economic turmoil has intensified since the Fed last month lowered its key interest rate for the first time in a decade, by a quarter percentage point.
Fed fund futures markets and many economists expect two more quarter-point rate cuts this year, likely in September and December, and Powell said nothing Friday to discourage that view. The Fed’s policymaking committee is scheduled to meet September 17-18.
“The three weeks since our (July meeting) have been eventful, beginning with the announcement of new tariffs on imports from China,” Powell said.
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