Fed: risks have grown to U.S. economy outlook

Federal Reserve Chairman Jerome Powell said the outlook for the U.S. economy has become cloudier since early May, with rising uncertainties over trade and global growth causing the central bank to reassess its next move on interest rates.

He said the central bank will closely monitor incoming data and be prepared to "act as appropriate to sustain the expansion."

"The crosscurrents have reemerged, with apparent progress on trade turning to greater uncertainty and with incoming data raising renewed concerns about the strength of the global economy," the AP cited the Fed Chairman as saying.

The baseline outlook for the U.S. economy remains favorable for continued growth, Powell said, but "the risks to this favorable baseline outlook appear to have grown."

In addition to rising trade tensions, Powell said since May incoming data has raised new concerns about the strength of the global economy, noting tentative signs that investment by U.S. businesses has slowed from earlier this year.