Instant View - Fed will respond 'as appropriate' to risks like trade war: Powell

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Instant View - Fed will respond 'as appropriate' to risks like trade war: Powell
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The Federal Reserve will respond 'as appropriate' to the risks posed b...

- The Federal Reserve will respond “as appropriate” to the risks posed by a global trade war and other recent developments, Fed Chairman Jerome Powell said on Tuesday in remarks that seemed to open the door to the possibility of a rate cut.

FILE PHOTO: The Federal Reserve building is pictured in Washington, DC, U.S., August 22, 2018. REUTERS/Chris Wattie/File Photo In a brief statement included as part of a speech on broader monetary policy issues, Powell said the Fed was “closely monitoring the implications” of a trade dispute that has, since the Fed’s last meeting, disrupted global bond and equity markets and posed risks to U.S. and world economic growth.

** Powell says ‘dot-plot’ of Fed rate forecasts has distracted attention from how Fed will react to unexpected events ** Powell says in times of uncertainty, median Fed rate forecast might best be thought of as ‘least unlikely’ outcomeBONDS: U.S. Treasury yields fell; 2s at 1.9015%; 10s at 2.1314%

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