Listen: Jerome Powell, Federal Reserve, Nancy Marshall Genzer discussed on Morning Edition
"Since nineteen thirty seven T. Rowe price. Invest with confidence. I'm David Brancaccio in New York. The guardians of interest rates at the Federal Reserve change their stance yesterday at their last meeting six weeks ago team fed said they would need to keep gradually increasing rates. But there was no mention of those gradual increases yesterday, although the feds still thinks US growth is quote, solid. Marketplace's Nancy Marshall genzer joins me now from Washington live. What change Nancy? David pitcher Jerome Powell says right now there are economic cross-currents that justified the Fed's decision to leave interest rates alone. Here's how he described those cross-currents yesterday global growth has slowed as well as some let's say government related risks like Brexit and trade trae discussions and also the effects and ultimate disposition the shutdown. Now, we were dealing with some of these same economic risks last month when the fed still decided to raise rates, and I think that's what's caused some confusion, but some of the other risks Powell listed there are new like the partial government shutdown, and how messy Brexit has gotten in Britain Powell, also said a second partial government shutdown could cause more lasting economic damage. So he's watching that what other economic risks are the fed people concerned about well debt for one. I asked Powell if the fed is helping create a corporate debt bubble. By keeping interest rates so low for so long, and he told me the fed is keeping an eye on corporate debt because if corporations are loaded down with dead in the economy goes south, they're going to be less able to weather that and keep serving their customers and may have to do layoffs and and things like that which so they can amplify in effect a negative downturn. Powell was also asked about the federal budget deficit earlier this week. The Congressional Budget Office said the deficit will be over a trillion dollars a year by twenty twenty two Powell says that's not sustainable, Nancy. Thank you market interest rates are moving, according to logic today, given the fed news the benchmark ten year interest rate is down below two point six six percent. Some other numbers the footsie stock index."