Powell says U.S. economy was hit by 'confidence shock' - it has only partly recovered
Thursday, 11 July 2019 23:00 WIB |
FISCAL & MONETARY |The FedFiskal & Moneter
Federal Reserve Chairman Jerome Powell said Thursday that the U.S. economy was hit by a severe œconfidence shock in May from which it has only partly recovered.
œYou saw business confidence surveys¦quite negative, fairly broadly, Powell said, in testimony to the Senate Banking Committee.
œSome of that has recovered, but only after the Fed œstepped forward and said it was willing in lower interest rates, Powell said.
The Fed chairman™s comments answer the question of why the central bank seems poised to ease monetary policy as soon as the end of the month.
In his testimony to the House on Wednesday, Powell set the stage for a rate cut as early as the end of this month, saying trade uncertainties and global growth were weighing on the economy.