FIRST AIRED: July 10, 2019

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00:00:00
federal reserve chairman Jerome Powell walked into two days of congressional testimony Wednesday knowing financial markets will looking for clues a rate cut is likely coming later this month and by most accounts that's exactly what he delivered Powell told the house financial services committee he's ready to act to keep the US economy growing in the face of persistent risks let's go let's go to trade %HESITATION we've agreed to begin discussions again with China and %HESITATION that well that's that's a constructive step it doesn't remove the uncertainty that we see as as overall wing on on the outlook so I would say that %HESITATION the bottom line for me is that the uncertainties around global growth in trade continue to weigh on the outlook in addition inflation %HESITATION continues to be muted and and those things are still in place add to Powell's worry list a global factory slow down that could blow back on the US economy concerns about raising the federal debt ceiling and the potential financial market disruption caused by brexit put all those together and that's enough for Powell to clarify his position that rates are likely to head lower at the July thirty thirty first meeting the first rate cut in a decade that little fire under the stock market the S. and P. five hundred rallied above three thousand for the first time ever the nasdaq also hit a record high one thing Powell says he won't be factoring into his decision the intense criticism he's getting hit with from president trump he said as much in this exchange with ranking Republican is a factor I can does the federal reserve have the capacity make independent monetary policy decisions under law , yes we do , is that impeded by %HESITATION , saying negative things about you , we %HESITATION we will send a hamster it ever or %HESITATION diminish based off people saying positive or negative things about you neither we it we will always focus on doing the job you have a signed us and we will always do it to the best of our ability and based on objective analysis in fact and what about staying on the job German if you got a call from the president , today or tomorrow and he said I'm firing you pack up it's time to go what would you do , well of course I would not do that I can hear you , my answer would be no Powell does it all again on Thursday when he testifies before the Senate banking committee