US Fed to look 'carefully' at Facebook virtual coin Libra

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"Just sitting here today, I think 50 basis points would be overdone", Mr Bullard said in an interview with Bloomberg Television.

Powell, speaking at the forum in NY, said that "authority for overseeing Libra is going to be in a number of places but I think the big picture is we're going to be looking really carefully at it". Articles appear on euronews.com for a limited time.

Mr Bullard dissented, arguing that weak inflation and uncertainties about the outlook for economic growth warranted a rate cut.

Richmond Federal Reserve President Thomas Barkin said there was a risk of recession for the United States, but when asked if a rate cut might be needed this year, he said: "I don't know".

The Fed kept its benchmark interest rate unchanged last week and signaled a new openness to a cut in July.

Powell reiterated the central bank's stance at its last policy meeting during an event held by the Council on Foreign Relations in NY on Tuesday.

Rate-sensitive bank stocks were down 0.3%, as USA benchmark yields fell below the closely watched 2% level. They were driven by concern that inflation is stuck below the central bank's 2 per cent target - suggesting that there's room to stimulate the economy, helping to create more jobs and boost wages, without pushing prices too high.

Both bond and stock markets have priced in at least one interest rate cut by the Federal Reserve before the end of the year.

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The Fed's rate-setting committee next gathers on July 30-31.

Mr Powell said that, while the tariffs themselves have not yet been catastrophic for the U.S. economy, whose growth prospects remains strong, trade tensions could hurt markets and confidence going forward.

"Inflation is running low, inflation expectations are running low, and you would like to get those back up to 2%", he said.

In addition, he disagrees that the inverted yield curve between the 10- year US Treasurys and 3-month bonds- long-considered a sign that recession is looming -means that the Fed will act swiftly to cut rates and stimulate the slowing US economy.

Fed officials acknowledged on Tuesday that weakening economic conditions may merit lowering interest rates in the coming months, but they poured cold water on the idea that any cuts would be swift and influenced by Trump's demands.

The official also said the White House had no plans to demote Mr Powell.

But he also insisted the central bank was "insulated" from political pressures despite persistent antagonism from President Donald Trump, including sharp criticism from the Republican leader on Monday. Some legal experts say it would be hard or impossible for Mr Trump to remove Mr Powell.

"We're human. We'll make mistakes". We make mistakes. I hope not frequently but we will make mistakes.

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