U.S. markets traded in a tight range Wednesday as Federal Reserve Chairman Jerome Powell testified at the annual meeting of the Joint Economic Committee of Congress, a stone's throw from the impeachment hearings into President Trump happening concurrently in front of the House Intelligence Committee.
Powell reaffirmed the central bank's outlook and said after its most recent rate cut last month ー the third in 2019 ー namely, that policymakers are comfortable with the current state of monetary policy and are unlikely to cut rates again in the short-term.
"The baseline outlook remains favorable" with "sustained expansion of economic activity," Powell said, and the Fed's currency stance is "likely to remain appropriate" if economic conditions don't materially change.
With the U.S. economy noticeably cooling in certain areas ー manufacturing is in a recession, business investments are shrinking, and productivity is falling ー Powell made a point to recognize that the labor market remains remarkably strong, with unemployment "meaningfully" below 4 percent for 18 straight months for the first time.
The economy is capable of operating with lower unemployment than was thought possible with inflation remaining in check, Powell said.
Responding to questions from lawmakers, Powell acknowledged that labor force participation for Americans in their prime working years is and has been stubbornly low and "not where it should be," relative to other developed nations. He also noted that the highest wage growth is happening in many of the lowest-paying fields, which is helping support consumer confidence that is perhaps higher than one would expect given the macroeconomic headwinds, including overall trade tensions with China.
"The outlook is good," Powell said.
Pressed by several lawmakers to comment on President Trump's repeated attacks on him, Powell demurred, at one point refusing to take the bait from Sen. Ted Cruz who asked him to comment on what a wealth tax, proposed by Sen. Elizabeth Warren, could do to economic growth.
The Fed works for all Americans and stays out of politics, Powell said. Though he did also notably say that the federal budget is on an "unsustainable path," which could present a problem if and when the economy goes into a downward trajectory.
But despite the risks, Powell remained upbeat during his 90 minute appearance on Capitol Hill, at one point even asking Americans to pat themselves on the back for the country's economic fortunes.
"I hope everyone takes credit for the good economy we're seeing now," he said.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
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.
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