techkenyot.com
techkenyot.com January 19, 2019


Longer US government shutdown will hit economy, says Fed chief

11 January 2019, 08:56 | Hattie Nash

US official warns of recession risk if interest rates go much higher

Federal Reserve Board Chair Jerome Powell talks with Carlyle Group co-CEO David Rubenstein during the Economic Club of Washington luncheon

In that appearance Powell emphasized the Fed's flexibility and patience in evaluating data, easing expectations of steady rate hikes in a message amplified by a half dozen other Fed officials in recent days. "It's a tightly integrated economy and financial markets will see the effects of that", he said.

James Bullard, president of the St Louis Federal Reserve Bank, one of 12 in the Fed system and a voting member of the policy committee this year, called the current interest rate "a good level", in an interview with the Wall Street Journal. "The principal worry I would have is global growth".

USA stocks initially turned lower after Powell said the central bank is sticking with its process of shrinking its balance sheet to a more normal level, which removes stimulus put into place to revive the economy following the financial crisis and recession a decade ago.

US central bankers are refining their message after the hawkish tone of their December 19 statement and forecasts for further rate hikes in 2019 roiled financial markets.

Djokovic, Federer on opposite sides of Aussie draw | AP sports
Top seed Novak Djokovic , who like Federer is bidding for a record seventh title in Melbourne , will take on a qualifier. On the women's side, all eyes will be on Serena Williams as she aims for Grand Slam number 24.

"There is no such plan", Powell said.

Powell on Thursday also reiterated that, separate from what happens with interest rates, the Fed would continue allowing its almost US$4 trillion portfolio of bonds to shrink each month, to a level "substantially smaller" than it is now. The Fed has projected two more rate hikes, but Powell is now signaling the Fed will be "patient" on any further hikes.

Powell's comments on Fed patience were similar to the message in the minutes of the Fed's December meeting as well as the comments of other Fed officials this week. "That was conditional on a very strong outlook for 2019", which may or may not materialize, with the Fed adjusting policy accordingly.

While there is wide agreement that the USA economy will grow more slowly than the roughly 3 per cent rate of 2018, there's a lot of debate about how fast the slowdown will be.

UAE beat India in Pulsating AFC Asian Cup Match - Highlights
All three teams now have a good chance to qualify to the knockouts at the moment. Both the teams are placed in group A alongside Thailand and Bahrain .

At the same time, Powell said there are concerns in financial markets about slowing global growth and rising trade tensions. If conditions weaken, the Fed would react.

The Fed chief was also asked about the partial U.S. government shutdown.

"Notwithstanding strong economic growth and a low unemployment rate, inflation has surprised to the downside recently, and it is not yet clear that inflation has moved back to 2 percent on a sustainable basis, " Clarida said.

"We're in a place where we can be patient and flexible and wait and see what does evolve, and I think for the meantime we're waiting and watching", Powell said in a question-and-answer session Thursday at the Economic Club of Washington, D.C.

Jaguar Land Rover to cut 4500 jobs
JLR, which has 44,000 workers in the United Kingdom , had cut almost 1,000 jobs in country in 20018. Chandrasekaran said in late December.



Other News

Trending Now

R. Kelly's attorney responds to allegations made in docu-series
Future , who collaborated with Kelly on "Tear It Up" off 2013's Black Panties album, went on to clarify his stance. Before the series aired, Kelly and his lawyers had dismissed the accusations and threatened to sue Lifetime.

Marion County hospitals to temporarily restrict visitors due to high flu activity
Thirteen flu-related deaths have been reported nationally by the Centers for Disease Control and Prevention. For reasons of medical privacy, the department will not be releasing additional information.

Cristiano Ronaldo: Police 'issue warrant for DNA after rape claim'
Authorities in Las Vegas would then determine whether it matches genetic material found on Mayorga's dress. Lennard has since been in contact with Mayorga's team and will be looking to share her evidence with them.

New York City mayor announces $100 million health care program
MAYOR BILL De Blasio (second from right) announces a plan to offer low-cost or free health insurance to low-income New Yorkers. New York City Mayor Bill de Blasio announced Tuesday that the city would be providing all residents with health care .

US Special Representative Zalmay Khalilzad On Afghanistan To Visit India
The war was waged by an worldwide coalition led by the United States in the wake of the September 11 terror attacks. He said the Taliban must endorse the constitution and hold talks within the framework of the Afghan government.

West Ham source dismisses link to global midfielder
West Ham United star Samir Nasri has admitted that he cried when he thought that his career was over. I don't know what the Spaniard gives you - and Eden Hazard is just not a striker.

Meghan and Harry heading north for first 2019 engagement
Now there have been reports that the show's bosses are attempting to lure her back to acting for one final cameo appearance.

U.S. military veteran held in Iran
The State Department advises Americans not to travel to Iran "due to the risk of arbitrary arrest and detention". The New York Times noted that Iran did not acknowledge the arrest of Wang until July 2017.

DNA sought of males at center where comatose woman had baby
The woman was an enrolled tribal member of the San Carlos Apache tribe of southeastern Arizona, according to officials. According to its website, the facility serves infants, children and young adults who are "medically fragile".

Meghan's patronages: Duchess of Sussex's four new causes revealed
She became the fourth member of the Royal Foundation, started by William, Kate and Harry, at the time of her wedding. Meghan Markle has been carrying out her royal duties alongside Prince Harry with a smile on her face.