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Trump Threatens National Emergency | Powell Reiterates Flexible Rate Outlook
Published January 11, 2019
President Donald Trump threatened to declare a national emergency to circumvent Congress if he can’t reach a deal with Democrats to fund his promised border wall. He headed to the US-Mexico border to draw further attention to his case after negotiations with lawmakers blew up.
Federal Reserve Chairman Jerome Powell said the central bank would be patient in raising interest rates this year after global growth worries gripped financial markets in recent weeks. Powell also said he did not see signs of a recession in the near term but noted that while the US economy appears solid, a slowdown in China is a concern.
The Consumer Price Index declined 0.1 percent in December on a seasonally adjusted basis after being unchanged in November, the US Bureau of Labor Statistics reported on Friday. The seasonally adjusted decline in the all items index was caused by a sharp decrease in the gasoline index, which fell 7.5 percent in December.
Fed Vice Chairman Richard Clarida reinforced a message of patience and possible re-calibration and said the US central bank can afford to take a wait and watch stance on interest rates, joining the chorus of officials who say patience is the new watchword.