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.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
Starbucks’ AI barista aims to speed service and improve experience. Nick Lichtenberg, Fortune Business Editor, explains its impact on workers and customers.
As Big Tech reports Q3 earnings, investors await proof that massive AI and cloud investments from Meta, Apple, Microsoft, and Alphabet are driving real growth.
Eric Trump joins us to discuss American Bitcoin’s mission, market strategy, and why he believes the U.S. must lead the next era of digital currency innovation.
Unreal Snacks CEO Kevin McCarthy shares how dye-free candy is leading the sweets revolution—just in time for what could be a record-breaking Halloween 2025.
