"There are significant risks that we are analyzing, but the economy of the United States is in a good position. The global economy is slowing since mid-2018, among other things because of the uncertainty about global trade. We will continue to value all the factors and act accordingly to sustain the expansion. "
They are the words of Jerome Powell, president of the United States Federal Reserve (Fed), during his participation in the Swiss Institute of International Studies of the University of Zurich. The central banker has added that "the employment data known this Friday (in the US) are consistent with a strong labor market. "
Powell has added that the Fed "is not anticipating a global recession or in the US"On the American economy, he pointed out that" the labor market is still strong, as is consumer spending, and inflation continues near the 2% target. "
In relation to the uncertainty caused by the trade war between the US and China, has acknowledged that it is affecting "business investment decisions". In this regard, he pointed out that "we will use monetary tools to sustain economic expansion because it is our obligation".
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Powell has also explained that the natural interest rate, both in the US and in other developed economies, has been reduced considerably in recent years, currently falling to levels that can range between 2% and 3%. This has "reduced maneuverability of central banks", so the Fed is currently in a process to find new tools to deal with future economic crises.
After the employment data, and despite Powell's words about the good health of the US economy, the consensus discounts in a 93% that the US Federal Reserve (Fed) will lower interest rates in 25 basis points at its next meeting on September 18.
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