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Fed's Powell urges patience on US rates, citing growth risks

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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.

[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

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