Powell Says Economic Growth Will Likely Slow as De-Globalization Pressures Build

Contact Your Elected Officials
The Epoch Times Header

Federal Reserve Chair Jerome Powell said he thinks itโ€™s rather โ€œlikelyโ€ that the forces of de-globalization will mount, leading to a more fractionalized new normal characterized by higher inflationary pressures, lower productivity, and slower economic growth.

Powell made the remarks on June 29, during a panel discussion at the European Central Bankโ€™s annual policy forum in Sintra, Portugal.

โ€œWeโ€™ve lived through a period of disinflationary forces around the worldโ€”this is globalization, aging demographics, low productivity, technology enabling all of that,โ€ Powell said, describing it as a world where inflation was generally โ€œnot a problemโ€ in most advanced economies.

โ€œSince the pandemic, weโ€™ve been living in a world where the economy is being driven by very different forces, we know that,โ€ he continued, noting that what remains unknown is whether things will go back to a prior disinflationary environment and, if so, to what extent.

โ€œWe suspect that it will be kind of a blend,โ€ the Fed chief said.

โ€œIn the meantime, weโ€™ve had a series of supply shocks, weโ€™ve had very high inflation across the world, certainly through all the advanced economies, and โ€ฆ weโ€™re learning to deal with it,โ€ he said, with his remarks coming as central banks around the world have, in general, been caught flat-footed by persistently high inflation and have rushed to tighten loose monetary settings to bring down soaring prices.

โ€˜Certainly a Possible Outcomeโ€™

Powell said the Fedโ€™s job of achieving price stability and maximum employment in this new normal with new forces at work has been a โ€œvery different exerciseโ€ than the U.S. central bank has undertaken over the past 25 years while suggesting that slower economic growth would be an inevitable tradeoff in fighting inflation.

โ€œIf what we see, for example, is a re-division of the world into competing geopolitical and economic camps, in a reversal of globalization, that certainly sounds like lower productivity and lower growth,โ€ he said.

โ€œThatโ€™s certainly a possible outcome and I think probably, to some extent, a likely outcome,โ€ Powell said.

The Epoch Times
The Epoch Timeshttps://www.theepochtimes.com/
Tired of biased news? The Epoch Times is truthful, factual news that other media outlets don't report. No spin. No agenda. Just honest journalism like it used to be.

Now Lawyers Are Looking for the Epstein List, Too!

So it turns out that when FBI Director Kash...

Remember Epsteinโ€™s โ€œLittle Black Booksโ€?

Image of Bill Clinton getting a massage from Jeffrey...

On the Major Leagueโ€™s periphery: A major trip through the minors

For Nick Dunn, the trek through the minors is a trifecta of physical, mental, and organizational hurdles filled with politics, roster volatility, and injuries.

Private Citizens are Now Looking into Epstein Client List

Most Americans have never felt so betrayed and confused by a president and his admin as they are by the Trump admin over the Epstein client list issue.

Peace In Ukraine Wonโ€™t End The Westโ€™s Hybrid War On Russia

The Westโ€™s Hybrid War on Russia to follow peace in Ukraine is inevitable due to neoconservatives and liberal-globalists in its decision-making ecosystem.

DOJ Shuts Down Investigation on T-Mobile-UScellular Merger

DOJ no longer opposes the merger of T-Mobile and UScellular and has closed its investigation into the matter, the department said in a July 10 statement.

Trump Visits Central Texas, Epicenter of Catastrophic Flood That Killed More Than 120

President Trump landed in Central Texas for first-hand look at damage from devastating flood claiming the lives of more than 120 people statewide.

Federal Judge Blocks Trumpโ€™s Birthright Citizenship Order After Supreme Court Ruling

Judge barred Trump admin from enforcing EO limiting birthright citizenship, after Supreme Court restricted judges from issuing nationwide injunctions.

California Might Stop Making Necessary Debt Payments for 2 Years

California State Legislature met the budget submission deadline and it was signed by the governor, but they still need to cut $12 billion in spending.

Trump Says US Has Struck Deal With NATO to Supply Weapons to Ukraine

President Donald Trump said on July 10 that he has struck a new deal with NATO under which the United States will supply weapons to Ukraine

RFK Jr. Bans Illegal Immigrants From Government-Funded Programs

HHS Sec. Robert F. Kennedy Jr. is rescinding a 1998 interpretation of a law that allowed illegal immigrants to access certain government-funded programs.

Rubio Set to Visit Malaysia for ASEAN Meetings Amid Tariff Tensions

A delegation including U.S. Sec. of State Marco Rubio will travel to Kuala Lumpur, Malaysia, for series of high-profile meetings between July 11 and 12.

US Will Collect More Than $300 Billion in Tariff Revenues This Year, Treasury Secretary Says

U.S. is on track to potentially raise โ€œwell over $300 billionโ€ in tariff income by end of the year, Treasury Sec. Scott Bessent said during WH Cabinet meeting.
spot_img

Related Articles