Federal Reserve chairman signals cut in USA interest rates

Gold and Metals Rally as Fed's Powell Hints a Rate Cut in July

Gold and Metals Rally as Fed's Powell Hints a Rate Cut in July

However, the rate of increase in both measures had slowed recently, in line with the cooling in house sale prices, he said. Furthermore, investors solidified their expectations for at least a quarter-point rate cut at the end of this month.

Rising prices for housing, used cars and medical care helped drive USA consumer inflation higher last month despite flat or falling costs for food and fuel, the government reported Thursday.

The labor market remains healthy despite the rising risks to the 10-year old economic expansion, the longest in history.

The Fed chief stressed at his second day of congressional testimony that the USA economy is "in a very good place".

Powell spoke before the Senate Banking Committee on Thursday following similar testimony before the House of Representatives Financial Services Committee on Wednesday.

According CNBC, Powell testified that "inflation has been running below the Federal Open Market Committee's symmetric 2 percent objective, and crosscurrents, such as trade tensions and concerns about global growth, have been weighing on economic activity and the outlook".

The Fed, which has a 2% inflation target, tracks the core personal consumption expenditures (PCE) price index for monetary policy.

Analysts don't expect the inflation data to change the Fed's plan to cut the key lending rate at the end of the month.

The U.S. benchmark S&P 500 stock index notched a record closing high just shy of the 3,000 mark as financial shares were boosted by a jump in bond yields following soft demand in an auction of $16 billion in 30-year Treasuries. Ms Shelton said after the announcement that "this president really gets it" and that she "will strive to support the United States pro-growth economic agenda with the appropriate monetary policy".

West Brom keen on deal to sign Arsenal defender on loan
Bielik impressed during a spell with Charlton last season and this summer's Under-21 Championships and will be allowed to leave on loan again.

But Trump's statements spooked financial markets so decisively, and the threats to the global economy became so palpable, that a rate cut now appears nearly certain.

Powell has worked hard to build his relationships with lawmakers. "We're not surprised to see the front-end well bid".

"Local equity markets are reveling in the best of both worlds this morning as local investors love nothing more than lower USA interest rates and a weaker US dollar", Stephen Innes of Vanguard Markets said in a commentary. He mentioned business sentiment, a global slowdown in manufacturing, and a persistently low inflation rate.

The strong comments from the head of the U.S. central bank, the country's top financial regulator, adds to misgivings about the project, which has already produced strong skepticism among top policymakers across the globe.

Policymakers also appear to be far more anxious about a lack of confidence that is seeping into troubling spending and pricing decisions. Traders should appreciate the idiosyncratic way interest rate markets are now discounting Fed rate cuts: the rate cuts are extremely frontloaded.

Two senior Republican senators issued clear declarations of support for Federal Reserve Chairman Jerome Powell, whom President Donald Trump has threatened to remove from office.

She added that members of Congress "have been very much pleased with Powell and the way that he's conducted himself, but I wanted him to reiterate here that he was not going to bow down to the president".

Apparel, which has been volatile in recent months, rose 1.1% on the month, while dropping 1.3% annually. A cut could lift home and auto sales by lowering the borrowing costs for major purchases. Not all policymakers were convinced at the last meeting.

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