Jay Powell, US Federal Reserve chairman, has warned that risks to global growth have increased in recent weeks, reinforcing expectations that the central bank is likely to trim interest rates next month.
In a speech on Tuesday, Mr Powell warned that businesses and farmers are becoming more concerned about trade tensions, resulting in a drop in business confidence. His comments suggest the Fed is unlikely to return to raising rates any time soon and could cut them, despite what he described as “solid fundamentals . . . supporting continued growth”.
Mr Powell said: “When the FOMC [Federal Open Market Committee] met at the start of May, tentative evidence suggested these cross-currents were moderating, and we saw no strong case for adjusting our policy rate.