One reason for a Fed cut: Powell now fears too-low inflation
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July 12, 2019
WASHINGTON (AP) — In a shift from just a few months ago, Federal Reserve Chairman Jerome Powell is worried that too-low inflation could persist for a while — and undercut the U.S. economy.
Powell's concern is a key reason why the Fed will likely cut short-term interest rates late this month for the first time in a decade: A rate cut — and especially if it's followed by others — could help lift inflation closer to the Fed's target level.
The chairman's newly expressed worries about chronically low inflation reflect another sea change at the Fed: Powell and other officials seem to have jettisone...
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