WASHINGTON (AP) — The Latest on Federal Reserve Chairman Jerome Powell’s testimony before the Joint Economic Committee about the outlook for the U.S. economy (all times local):
10:45 a.m.
Private economists say Federal Reserve Chairman Jerome Powell is sending a strong signal that the central bank is not planning further interest rate cuts unless the economy weakens.
Sal Guatieri, a senior economist at BMO Economics, says Powell “stayed true to the patience script” by indicating that that the Fed’s key policy rate is likely to remain unchanged for an extended period unless economic risks increase.
Andrew Hunter, senior U.S. economist at Capital Economics, said Powell’s testimony on Wednesday indicated that a rate cut at the Fed’s next meeting in December was unlikely. Hunter said he believed Fed officials have been encouraged by more hopeful news on the US-China trade talks.
The Fed has cut interest rates three times so far this year.
9:35 a.m.
Powell says in written testimony that the Federal Reserve is optimistic about the U.S. economy, though it still faces risks from slower growth overseas and trade tensions.
“Looking ahead, my colleagues and I see a sustained expansion of economic activity, a strong labor market, and inflation near our symmetric 2% objective as most likely,” Powell said in a statement he will deliver to a congressional panel at 11 a.m.
Powell also says the Fed is likely to keep its benchmark short-term interest rate unchanged in the coming months, unless the economy slows enough to cause Fed policymakers to make a “material reassessment” of their outlook.
