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US Fed ‘grappling’ with need for rate cut: Jerome Powell

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America’s grinding trade wars are darkening the economic horizon and could justify a decrease in interest rates, Federal Reserve Chairman Jerome Powell said Tuesday.

But Powell also insisted the central bank was “insulated” from political pressures despite President Donald Trump’s persistent criticism of the Fed chairman.

Powell’s speech in New York amplified the central bank’s recent message that policymakers are ready to step in to protect the world’s largest economy, which next week will mark its longest expansion on record but is showing increasing signs of strain.

Markets overwhelmingly expect the Fed to cut rates next month as Trump’s trade battles drag on and the global economy slows — both factors that have begun to dent business confidence and investment in the United States.

But Powell was careful to temper this message, warning that the central bank would not “overreact” to individual data points and short-term swings in sentiment that could quickly evaporate.

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“The question my colleagues and I are grappling with is whether these uncertainties will continue to weigh on the outlook and thus call for additional policy accommodation,” Powell said in prepared remarks.

Trump has repeatedly — and publicly — demanded looser monetary policy, even though the Fed is meant to be above the political fray.

The Fed last week held steady on interest rates for the fourth time this year. And with US unemployment near historic lows and inflation forecast to rise only slowly, the outlook remained generally “favorable,” Powell said.

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But risks to that outlook have grown, he added, as recent progress on resolving trade disputes had deteriorated, producing greater uncertainty.

Powell said business people have voiced “heightened concern” over trade, which may have hit confidence and could also be turning up in economic data, such as weakening investment by companies.

But he cautioned that current economic warning signs could prove temporary and the US central bank should seek confirmation before taking any policy action.

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“It’s important not to overreact in the short term to things which may turn out to be temporary,” he said.

Nevertheless, he said “many” members of the Fed’s rate-setting Federal Open Market Committee believe the case for cutting rates had “strengthened.”

“A lot has changed since December, including estimates of global growth for 2019 have come down substantially,” he said during a Q&A following the speech.

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He pointed in particular to the near-collapse of US-China trade talks last month.

“My colleagues and I still see a favorable outlook as the most likely outlook,” he said.

“But we do see that the risks to that outlook have increased. We’re very mindful of those risks and prepared to use our policy tools to support activity as needed.”


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Trump: a history of inflammatory and ‘racist’ statements

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US President Donald Trump drew fresh accusations of racism Monday after he attacked four ethnic-minority Democrats in Congress, telling them to "go back" where they came from.

While Trump denies he is racist, he has a long history of political pandering to white suspicions about other ethnic groups, which many believe helped him win electoral victory in 2016 and which could be important in the election next year.

- Campaign against Obama -

Well before opened his bid for the White House in 2016, Trump targeted the African-American background of Barack Obama, suggesting the Hawaii-born president was really born outside the United States.

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As Trump sows discord, Chief of Staff Mulvaney reportedly focused on ‘building empire for the right wing’

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"Cabinet members are pressed weekly on what regulations they can strip from the books and have been told their performance will be judged on how many they remove."

While President Donald Trump dominates national media with racist tweets and lies, acting White House Chief of Staff Mick Mulvaney is quietly "building an empire for the right wing" and pushing Cabinet members to impose a radical and rapid deregulation agenda across the federal government, according to a new Washington Post report.

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Fifty years after Moon mission, Apollo astronauts meet at historic launchpad

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Fifty years ago on Tuesday, three American astronauts set off from Florida for the Moon on a mission that would change the way we see humanity's place in the universe.

The crew's surviving members, Buzz Aldrin and Michael Collins, are set to reunite at the same launchpad on Tuesday, the start of a week-long series of events commemorating Apollo 11.

Their commander and the first man on the Moon, Neil Armstrong, passed away in 2012.

But Aldrin and Collins, 89 and 88 respectively, will meet Tuesday at precisely 9:32 am (1332 GMT) at the Kennedy Space Center's pad 39A to kick off the festivities.

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