As Fed’s Powell affirms rate cut view, others see U.S. economy humming

As Federal Reserve Chair Jerome Powell kept the focus Thursday on global risks that could trigger a Fed rate cut in coming weeks, his colleagues from regional Fed districts painted a rosier picture of continued U.S. economic growth and a solid business outlook.

The contrasting remarks show the dilemma the Fed faces as it heads toward an end-of-month monetary policy meeting now broadly expected to end with a rate reduction.

On one hand – emphasized by Powell in Congressional hearings Wednesday and Thursday — global trade and economic risks have put a dent in investment, inflation is well below the Fed’s 2% target, and the U.S. expansion may need a shot in the arm.

But as they polled businesses in their districts, Atlanta Federal Reserve Bank President Raphael Bostic and Richmond Federal Reserve Bank President Thomas Barkin saw an economy still humming…

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