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The president of the federal reserve, Jay Powell, expressed his concerns concerning American growth after the turners of U Donald Trump, the disappointing employment numbers and a tumultuous week on the financial markets.
Powell said on Friday that the world's largest economy had remained “in good shape” despite “uncertainty” raised, after the president launched an aggressive program of price and expenses.
“We focus on the separation of the noise signal as the perspectives evolve,” said Powell, adding the Nourished was not “in a hurry” to reduce interest rates and was “well placed to wait for greater clarity”.
Powell's comments came while the first -rate S&P 500 ended the week down 3.1%, his worst race since early September. American actions have greatly fell in recent weeks after dark economic relationships have aroused Trump's pricing worries will slow growth.
Business leaders have warned chaotic pivots in commercial policy, including a major inversion This week in terms of product administration of products from Canada and Mexico, had made it difficult to manage their businesses and could thwart new investments in the United States.
The United States is “at the crossroads, economically,” said Charles Lemonides, director of investments at ValueWorks, a designing fund based in New York. “We don't know where politics is going and that creates huge troubles.”
On Friday, the Bureau of Labor Statistics published data showing that the United States created 151,000 jobs in February, in step of 160,000 forecasts by economists interviewed by Reuters.
The unemployment rate was 4.1% last month, compared to expectations that it would remain at 4%.
“The feeling of investors was euphoric after the elections, but there was a lot of cold water on this euphoria in the last month,” said Jim Tierney, head of the American growth fund concentrated in Alliancebenstein.
“Powell says everything is fine, but that's not what consumers' feeling says and that's not where we heard that we have heard the feeling of business,” he added.
The president of the Fed had recently reported that the central bank would retain its main interest rate at its current beach between 4.25% and 4.5% because it evaluated the impact of Trump policies.
But the markets are betting more and more that the Fed will be forced to reduce the rates more aggressively this year than what thought, the yields of the treasury leading to the treasure and weighing on the dollar.
The US dollar index, which follows the greenback for six other currencies, lost 4.3% this year.
Asked about what would encourage the Fed to respond to the prices imposed on American imports, Powell said on Friday: “What would be really important is what happens with the longer -term inflation expectations and how inflationary effects are persistent.”
Some economists have warned Trump's spending discounts and the reduction of federal workforce through the so-called “Department of Government efficiency”, led by billionaire Elon Musk, could also be an obstacle to the economy.
Earlier in the week, Trump made some prices back down He imposed in Canada and Mexico to try to appease the markets. On Friday, he recognized that economic pain could come from its policies and their sometimes chaotic deployment.
“There could be disruptions, a little disturbance,” said the president, repeating a line of his speech at Congress on Tuesday evening. “There will always be changes and adjustments.”
