US economy facing potential slowdown amid ‘heightened uncertainty’, says Fed chair.
The US economy faces a potential slowdown in consumer spending amid “heightened uncertainty about the economic outlook” among businesses, the Federal Reserve chair, Jerome Powell, said on Friday.
The central bank chief said the Fed will be in no rush to cut interest rates while it waits for more clarity on how the policies of the new Trump administration affect the economy.
Powell spoke at a volatile time, with stock markets and bond yields both declining in the wake of Donald Trump’s whiplash announcements of steep import tariffs on major trading partners Mexico and Canada, followed by delays in implementing them. Trump has also doubled tariffs on imports from China.
The Fed is expected to hold its benchmark interest rate steady in the current 4.25%-4.50% range at its 18 and 19 March policy meeting. Policymakers will also issue new economic projections that will give insight into how the first two months of the Trump administration have influenced the outlook for inflation, employment, growth and the path of interest rates.
Source: THEGUARDIAN
