Pedro Nicolaci da Costa July 19, 2018, 11:47 AM
- Federal Reserve Chairman Jerome Powell downplayed the threat of a trade war to the US economy.
- He also dismissed a key recession signal emerging from bond market yield spreads, despite its historical reliability.
Federal Reserve chairman Jerome Powell is overlooking two central risks facing the US economy: the prospect of a trade-war induced slowdown and a key recession warning sign from financial markets.
In Congressional testimony this week, Powell was upbeat on growth, arguing workers who need a job can find one, and downplayed a lack of wage growth despite a historically low 4% jobless rate.