The U.S. economy is at increasing risk of becoming trapped in a prolonged phase of slow growth that points to the need for lower interest rates than previously expected, Federal Reserve policymaker Jerome Powell was quoted as saying.
Powell, a member of the Federal Reserve Board of Governors, told the Financial Times he favored a "very gradual" path for any rises as U.S. economic outlook was dogged by global risks.
"The probability of an era of weaker growth, lower potential growth - that worries me more than it used to," he was quoted as saying in Monday's edition of the newspaper.
"With inflation below target, I think we can be patient."
China's exports and imports fell more than expected in July in a rocky start to the third quarter, pointing to further weakness in global demand in the aftermath of Britain's decision to leave the European Union.
Imports fell 12.5 percent from a year earlier, the biggest decline since February and suggesting China's domestic demand may be faltering despite a flurry of measures to stimulate economic growth.
Oil prices settled up nearly 3 percent on Monday amid renewed speculation that OPEC would try to restrain output, easing oversupply worries that pressured the market to three-month lows last week.
The Wall Street Journal reported last week that OPEC countries such as Venezuela, Ecuador and Kuwait want to take another stab at cooperation between the 14-nation Organization of the Petroleum Exporting Countries and non-members such as Russia.
U.S. West Texas Intermediate (WTI) crude settled up $1.22, or 2.9 percent, at $43.02 per barrel. WTI hit April lows beneath $40 a barrel last week.
Reference: Reuters
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