Impact of trade tensions ‘difficult to predict’

Washington (dpa),Jul 18 2018- The impact on the US economy of looming trade wars with China, the European Union and other major trading partners is unpredictable, Federal Reserve Chairman Jerome Powell said on Tuesday.   

“It is difficult to predict the ultimate outcome of current discussions over trade policy,” he said in testimony to Congress.   

Making a regular appearance on Capitol Hill, the US central bank chief said that the US labour market is “strong” with the economy growing “at a solid pace so far this year.”   

Powell said that recent data suggests “that economic growth in the second quarter was considerably stronger” than in the January-March period, which the Commerce Department estimates saw expansion at an annual rate of 2 per cent.   

The first estimate of growth for the April-June quarter is due on July 27 from the department’s Bureau of Economic Analysis.