News

Economy & Business

Powell Says Fed Will ‘Act as Appropriate to Sustain’ Economic ‘Expansion’

Federal Reserve Board Chairman Jerome Powell at a news conference in Washington, D.C., May 1, 2019. (Yuri Gripas/Reuters)

Federal Reserve chairman Jerome Powell said Friday that the central bank is poised to act to extend the decade-long U.S. economic expansion, now the third longest in the nation’s history.

“Our economy is now in a favorable place,” Powell said, before warning that “we have seen further evidence of a global slowdown, notably in Germany and China” spurred by developments such as U.S. tariffs on Chinese exports, a potential no-deal Brexit, and political unrest in Hong Kong.

“Based on our assessment of the implications of these developments, we will act as appropriate to sustain the expansion,” Powell told the central bank’s annual conference in Jackson Hole, Wyo. “It will at times be appropriate for us to tilt policy one way or the other because of prominent risks.”

“The U.S. economy has continued to perform well overall, driven by consumer spending” in the face of recent challenges, Powell said.

Meanwhile, stocks plummeted Friday after President Trump lambasted the Powell in a pair of tweets, complaining that the fed had not further slashed interest rates.

Last month, the Federal Open Market Committee cut its benchmark interest rate a quarter-point to 2.25 percent despite noting “moderate” growth and a “strong” labor market.

“Fitting trade policy uncertainty into this framework is a new challenge,” Powell said, referring to Trump’s heavy tariffs on China and other countries. “While monetary policy is a powerful tool that works to support consumer spending, business investment, and public confidence, it cannot provide a settled rule book for international trade.”

Most Popular

Elections

Trouble in the Workers’ Paradise

Representative Alexandria Ocasio-Cortez is precisely the sort of campaign surrogate you want, especially if you are Bernie Sanders: She is young, energetic, charismatic, popular (with the people she needs to be popular with, anyway), and, happily, currently ineligible to run for the presidency ... Read More
Elections

Trouble in the Workers’ Paradise

Representative Alexandria Ocasio-Cortez is precisely the sort of campaign surrogate you want, especially if you are Bernie Sanders: She is young, energetic, charismatic, popular (with the people she needs to be popular with, anyway), and, happily, currently ineligible to run for the presidency ... Read More
Law & the Courts

Bill Barr Derangement Syndrome

Can the republic survive Attorney General William Barr? That’s the question that has seized the media and center-left, which have worked themselves into a full-blown panic over an attorney general who is, inarguably, a serious legal figure and one of the adults in the room late in President Trump’s first ... Read More
Law & the Courts

Bill Barr Derangement Syndrome

Can the republic survive Attorney General William Barr? That’s the question that has seized the media and center-left, which have worked themselves into a full-blown panic over an attorney general who is, inarguably, a serious legal figure and one of the adults in the room late in President Trump’s first ... Read More
Elections

RIP Bloomberg 2020

I thought that Bloomberg’s confused half-defense of stop-and-frisk was going to be his low point. Well. His torturous response on his lawsuits and NDAs was truly awful -- beyond incompetent. I wouldn’t be surprised if this were the end of Bloomberg 2020. Read More
Elections

RIP Bloomberg 2020

I thought that Bloomberg’s confused half-defense of stop-and-frisk was going to be his low point. Well. His torturous response on his lawsuits and NDAs was truly awful -- beyond incompetent. I wouldn’t be surprised if this were the end of Bloomberg 2020. Read More
Elections

Revenge against the Deplorables

One of the theories behind the Bernie Sanders campaign, one often shared by his more devoted fans in the media, is that Democrats lost voters to Donald Trump in 2016 because they had ceased to talk about the economic issues that matter to those voters. Hadn’t Obama also shared his concern about trade deals and ... Read More
Elections

Revenge against the Deplorables

One of the theories behind the Bernie Sanders campaign, one often shared by his more devoted fans in the media, is that Democrats lost voters to Donald Trump in 2016 because they had ceased to talk about the economic issues that matter to those voters. Hadn’t Obama also shared his concern about trade deals and ... Read More