No signs of improvement in the U.S. economy

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 No signs of improvement in the U.S. economy


On June 19, local time, Federal Reserve Chairman Powell held a press conference in Washington, D.C., saying that interest rates will not be cut for the time being, and that the Federal Reserve will take measures when the economic situation is clearer.

DATA FIGURE: Powell. Photographed by China News Agency reporter Sha Haoting

On the same day, Powell attended the hearing of the House Financial Services Committee and made an exposition to Congress on the semi-annual report of the Federal Reserve. Powell said that since the Federal Reserve meeting in June, uncertainties brought about by trade frictions and declining global economic growth will affect the outlook for the U.S. economy.

Powell said that despite the good performance of the U.S. job market in June, adding 224,000 jobs, this does not change the fact that the U.S. economic outlook faces many risks.

Powell called the resumption of trade negotiations between the United States and China a constructive step, but it cannot eliminate uncertainties about the economic outlook.

As for Powells remarks, American media generally interpreted it as highly likely that the Federal Reserve would announce a rate cut at this months meeting. If interest rates were cut, it would be the first rate cut in the United States since the 2008 financial crisis, according to the Associated Press. U.S. stocks rose on the same day as Powell signaled a cut in interest rates. The Dow Jones Industrial Average rose about 100 points in the morning. In addition, at the hearing, Powell reiterated the Federal Reserves independence. He said that even if President Trump wanted to fire him, he would not resign. The law stipulates that my term of office is four years, and I am willing to complete it. It is reported that Trump has repeatedly publicly criticized the Federal Reserve policy and Powell himself. He called the Fed his greatest threat and regarded the Feds interest rate hike in 2018 as a huge mistake. Trump has repeatedly said he would consider replacing Powell. Source: Responsible Editor of CNN: Youyuan Garden_NO4712

U.S. stocks rose on the same day as Powell signaled a cut in interest rates. The Dow Jones Industrial Average rose about 100 points in the morning.

In addition, at the hearing, Powell reiterated the Federal Reserves independence. He said that even if President Trump wanted to fire him, he would not resign. The law stipulates that my term of office is four years, and I am willing to complete it.

It is reported that Trump has repeatedly publicly criticized the Federal Reserve policy and Powell himself. He called the Fed his greatest threat and regarded the Feds interest rate hike in 2018 as a huge mistake. Trump has repeatedly said he would consider replacing Powell.