The Fed: Powell suggests interest rates could be cut if trade tensions damage economic outlook

Bloomberg News/Landov
Chairman Jerome Powell kicked off a two-day Federal Reserve conference examining whether the central bank should alter its policy strategy and tool kit and reconsider how it talks to the market.

Federal Reserve Chairman Jerome Powell on Tuesday said the central bank was watching how trade disputes that have flared in recent days and weeks are impacting the economic outlook and assured markets that policy makers would “act as appropriate” to sustain the expansion.

“We do not know how or when these issues will be resolved. We are closely monitoring the implications of these developments for the U.S. economic outlook and, as always, we will act as appropriate to sustain the expansion, with a strong labor market and inflation near our symmetric 2% objective,” Powell said in a speech.

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