Powell to testify before Congress as Fed pauses rate cuts

WASHINGTON (AP) — Two weeks after the Federal Reserve cut interest rates for a third time this year, Fed Chairman Jerome Powell is due to testify in Congress about the U.S. economic outlook.

The Fed signaled after its Oct. 29-30 meeting that it would probably hold off on any further cuts as long as the economy stays healthy and inflation moves closer to the Fed’s target of 2%.

The three cuts, which lowered the interest rate the Fed controls to a range of 1.5% to 1.75%, were intended to offset drags from slower global growth and the U.S.-China trade war. Powell and other Fed officials have said they believe the cuts are working, as lower borrowing costs have encouraged more Americans to buy homes and splurge on appliances and electronics.

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