NewsBreak – Federal Reserve Chairman Jerome Powell downplayed expectations for a recession in the U.S., but reiterated that the central bank would continue to “act as appropriate” to support the expansion.
Key Points
- "Recession is not a likely outcome for the U.S. or the global economy," Powell said. He saw the most likely case was for the United States to continue to see moderate growth.
- Businesses want certainty that their supply chain is secure as lack of visibility on trade policies is causing some companies to hold back on investment, he said.
- Powell said he was committed to defending the Fed's 2% inflation target to avoid prolonged slowing in price pressures.
- The S&P 500 was up 0.15%, Dow up 0.30% and NASDAQ Composite down 0.08%.
Powell's comments came ahead of the Federal Reserve's two-day meeting on Sept. 17-18.
