Stocks Jump To Record Highs, Fed Chief Still Has “Uncertainties”
The S&P 500 reached an all time high Wednesday surpassing 3,000. The recent jump in the stock market follows news from the Federal Reserve Chair Jerome Powell signaled he will cut interest rates later this month.
Powell was pressed by lawmakers of the House Financial Services Committee Wednesday about his lack of optimism in the booming economy.
Powell’s testimony recognized a strong labor market. The Chair cited the monthly addition of 172,000 jobs in 2019, a lowering of the unemployment rate to 3.7 percent, and a GDP increase of 3.1 percent for the first quarter of 2019. His concerns, Powell shared, rest in his “uncertainties” with Trump Administration’s trade negotiations pointing to a subsequent a lull in business investment, saying, “Crosscurrents have reemerged.”
“Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then, based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook,” Powell testified.