The Federal Reserve's next move may well be an interest rate cut if weakening growth around the world starts infecting the U.S. economy, former central bank Chair Janet Yellen said Wednesday.
Weakening economies in China and Europe is posing danger to an otherwise strong U.S. economy, Yellen told CNBC's Steve Liesman during a "Power Lunch" interview.
"Of course it's possible. If global growth really weakens and that spills over to the United States where financial conditions tighten more and we do see a weakening in the U.S. eonomy, it's certainly possible that the next move is a cut," she said. "But both outcomes are possible."
The former central bank head cited "slowing global growth" as the biggest threat to the economy she watched over.
"The data from China has been recently weak, the European data has also come in weaker than expected," she said.
Yellen served in the top role from 2014-2018 and is now a distinguished fellow at the Brookings Institution.
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from Top News & Analysis https://cnb.cx/2Sgtaiu
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