Federal Reserve chairman Jay Powell told US lawmakers yesterday he sees little reason to lower interest rates next month, despite coming under renewed pressure from President Donald Trump to loosen monetary policy.
Mr Powell told the Senate’s joint economic committee the current policy stance would probably remain appropriate “as long as incoming information about the economy remains broadly consistent with our outlook”.
He also reminded lawmakers that if a downturn were to come, government spending would be a key policy tool, for which Congress has responsibility. But he warned that the federal deficit was “unsustainable” and could make it difficult for Congress to act.
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