The fed warned of increasing risks to the global economy because of Brexit


The victory of the supporters of a British exit from the EU (Brexit) on the last referendum could prevent the acceleration of growth of the US economy, warned a member of the Board of governors of the Federal reserve system (FRS) Jerome Powell. Given the evaluation was the first formal statement of the heads of the fed about the possible consequences of Brexit, according to the newspaper Financial Times.

According to Powell, to draw final conclusions about the impact of Brexit is too early, however, the outcome of the vote has already raised the risks for the US economy, associated with low growth of the economies of key trading partners of the country.

“Vote for Brexit is able to create new obstacles to the development of economies around the world, including ours. Risks to the global economy have been raised before the referendum, and the outcome of the vote has added to the uncertainty,” explained Powell.

He also noted that currently, the U.S. financial market remains stable, but the fed will have to consider the factor of Brexit in developing strategies aimed at ensuring price stability and increased employment.

“The concern is the possible slowdown of growth in the number of jobs,” said Powell, noting at the same time that monetary policy should continue to support economic growth.

Member of the Board of governors of the Federal reserve also predicted that in the long term growth of US GDP will be approximately 2% per year (1 PP less than expected), which means “much slower increase of level of life.”