Fed's Powell: Will act 'as appropriate' to sustain US expansion

WASHINGTON: Federal Reserve Chair Jerome Powell stressed Friday that the US central bank will act to ensure the economic expansion continues, even in the face of "significant risks" posed by slowing global growth.

But as Beijing stepped up retaliation in the US-China trade war, Powell warned that trade tensions are exacerbating the global slowdown and the Fed doesn't have a "rulebook" for dealing with the fallout.

Powell at the same time played down concerns further stimulus could spark a surge in inflation, saying, "Low inflation seems to be the problem of this era, not high inflation."