While speaking at Paris economic conference Tuesday, Federal Reserve Chairman Jerome Powell reiterated that the Fed would "act as appropriate" due to "uncertainties" in the global economy, citing Brexit and the upcoming U.S. debt limit issue as points of concern. 

Powell noted that the 2008 financial crisis raised the importance that central banks must place on global developments.

“The global nature of the financial crisis and the channels through which it spread sharply highlight the interconnectedness of our economic, financial, and policy environments,” Powell said. “U.S. economic developments affect the rest of the world and the reverse is also true.”

Economists and market analysts are predicting that the Fed will cut borrowing rates during the Federal Market Open Committee (FOMC) meetings on July 30 and 31. The last time rates were cut was in 2008. Powell made similar comments about the possible rate cut in a meeting Wednesday.

If rates are cut, consumers could pay less in short-term interest on credit cards and home equity loans, and those with mortgages could have lower monthly payments. 

Some analysts expect further rate cuts by a quarter-point later in 2019 and 2020 in addition to a possible July cut.

Powell also added that a key indicator of inflation had increased in June. The Personal Consumption Expenditure (PCE) price increased by 1.7% in June, up from 1.6% in May. Powell then added that inflation pressures "remain muted." 

Powell has so far increased rates as chairman in order to curb inflation, which is called Contractionary Monetary Policy by economists.

President Trump, who has publicly stated he wants lower rates to stimulate the U.S. economy, has expressed dissatisfaction with the fed, even describing it as his "biggest threat." There have even been reports that Trump has considered "demoting" or firing Powell, which the Trump administration has denied. Powell has said that he will remain as chair, even if Trump asks him to step down. 

Powell was nominated by Trump in November 2017 and began his term in February 2018, succeeding Barack Obama-appointee Janet Yellen.