Having kept the Fed Funds target unchanged at a band between 2.25 and 2.5 per cent, in the subsequent press meeting Mr Powell said, ‘’we suspect transitory factors may be at work. If we did see inflation running persistently below, that is something the committee would be concerned about and something we would take into account when setting policy’’. He also noted that the US job gains have been ‘solid, on average’ with solid economic activity. On Tuesday President Trump suggested the Fed should cut interest rates by 1 per cent because, at current levels, it was holding back the economy.
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