Economics
Fed Rate Pause Possible in 2019 as Powell Highlights Headwinds
- Fed chief cites slowing global demand, fading fiscal stimulus
- U.S. central bank still seen on track for December rate hike
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Federal Reserve Chairman Jerome Powell has laid out a scenario for a pause in the central bank’s interest-rate hiking campaign sometime next year by highlighting potential headwinds to the U.S. economy.
While generally upbeat about the outlook, Powell on Wednesday listed three possible challenges to growth in 2019: slowing demand abroad, fading fiscal stimulus at home and the lagged economic impact of the Fed’s past rate increases.