Federal Reserve chairman Jerome Powell on Friday said the central bank is "not forecasting or expecting a recession" in the U.S. The optimistic remarks come amid a growing concern by economists, investors, and business leaders that a slowing of the U.S. economy is imminent.
"I wouldn't see a recession as the most likely outcome for the U.S. — or for the world economy for that matter," Powell said during a panel discussion in Zurich, Switzerland.
Powell stressed, however, that slowing global growth and uncertainty around U.S. trade policy does continue to threaten the domestic economy, which is now in its 11th consecutive year of expansion. He also hinted that the Fed — as expected — will cut interest rates later this month to bolster growth and address the growing risks.
"We're going to continue to watch all of these factors — and all of the geopolitical things that are happening — and we're going to continue to act as appropriate to sustain this expansion," Powell added while speaking alongside the Chairman of the Swiss National Bank, Thomas Jordan.
In July, the Fed cut interest rates by 0.25 percent in an effort to maintain growth and mitigate the growing risks. The decision marked the first time the Fed lowered rates since the 2008 financial crisis.
In a speech last month, however, Powell acknowledged that the current economic risks — specifically President Trump's trade disputes — pose "new challenges" for the Fed, which has no "rulebook" on how to respond.
Powell's positive assessment on Friday came just hours after the U.S. Bureau of Labor Statistics released a weaker-than-expected jobs report, which detailed disappointing, but sustained, employment growth in August.
"The most likely outcome for the U.S. economy is still moderate growth, a strong labor market, and inflation continuing to move back up," he said. "The consumer is in good shape and our main expectation is not at all that there will be a recession."
The Fed, which historically stays above the political fray, and Powell himself have come under enormous pressure from the Trump administration since the 2016 election. On Friday morning, Trump tweeted that the Fed was "WAY too early to raise, and Way too late to cut" interest rates during his presidency.
"Where did I find this guy Jerome? Oh well, you can't win them all!" the president added.
During the event at the University of Zurich, Powell added that political concerns play "absolutely no role" in the Fed's monetary policies. "I would not tolerate any attempt to include them in our decision making or our discussions," he said.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
With disengagement rising and hybrid work shifting, 'Everybody Matters' author Bob Chapman explains why treating people well could define the future of work.
We sat down with Ali Furman, U.S. Consumer Markets Industry Leader at consulting firm PwC to ask what trends she garnered from the initial data this year.
