Powell Says Economy in Favorable Place, Faces Significant Risks

Federal Reserve Chairman Jerome Powell said the U.S. economy is in a favorable place but faces “significant risks” as growth abroad slows amid trade uncertainty.

“Trade policy uncertainty seems to be playing a role in the global slowdown and in weak manufacturing and capital spending in the United States,” Powell said in the text of his remarks Friday to central bankers gathered at the Kansas City Fed’s annual symposium in Jackson Hole, Wyoming. “We will act as appropriate to sustain the expansion, with a strong labor market and inflation near its symmetric 2% objective.”

U.S. stocks pared losses and Treasuries climbed after Powell’s remarks as investors took them as leaving the door open to another rate cut when the Fed meets next month.


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