Fed's Powell urges patience on US rates, citing growth risks
[LONDON] The US economy is at increasing risk of becoming trapped in a prolonged phase of slow growth that points to the need for lower interest rates than previously expected, Federal Reserve policymaker Jerome Powell was quoted as saying.
Mr Powell, a member of the Federal Reserve Board of Governors, told the Financial Times he favoured a "very gradual" path for any rises as US economic outlook was dogged by global risks.
"The probability of an era of weaker growth, lower potential growth - that worries me more than it used to," he was quoted as saying in Monday's edition of the newspaper.
"With inflation below target, I think we can be patient."
Mr Powell spoke on Thursday, the day before strong US nonfarm payrolls numbers for July led to markets ramping up bets on a US rate rise this year.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
International
Chinese firms are investing abroad at fastest pace in eight years
Sri Lanka’s economy expected to grow 3% in 2024, central bank says
Yellen says US can bring inflation down without hurting jobs
US dollar briefly falls versus yen after GDP data
US weekly jobless claims unexpectedly fall
US economic growth slows more than expected in Q1