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Fed chair upbeat on U.S. economy, but still hints at rate cut

US Federal Reserve Chairman Jerome Powell speaks during a press conference after a Federal Open Market Committee meeting in Washington, DC on July 31, 2019
Fed chairman Jerome Powell at a news conference in July. Photo: Andrew Caballero-Reynolds via AFP

Speaking on a panel in Zurich on Friday, Federal Reserve chairman Jerome Powell remained optimistic about the state of the U.S. economy — including the labor market, despite the morning's softer-than-expected jobs numbers. Still, he hinted that another interest rate cut could be coming later this month.

Why it matters: Powell said the Fed is not "forecasting or expecting a recession," but noted there are significant risks, including slowing global growth and uncertainty around trade policy which is "causing companies to hold back on business investment decisions." Powell also said that lowering "the expected path of interest rates" has also supported the U.S. economic outlook.