Federal Reserve Chairman Jerome Powell said the central bank is“carefully monitoring” downside risks to U.S. growth and “will actas appropriate to sustain the expansion,” reiterating concerns lastweek that cemented expectations for an interest-rate cut later thismonth.

“Uncertainties about this outlook have increased, however,particularly regarding trade developments and global growth,”Powell told a dinner audience at the Bank of France in Paris onTuesday, referring to the Fed's baseline scenario for growth to“remain solid.” Federal Open Market Committee (FOMC) participants“have also raised concerns about a more prolonged shortfall ininflation below our 2 percent target,” he said.

Powell's remarks closely resembled his July 10-11 testimony toU.S. lawmakers and continue to support the case to lower rates whenthe Fed meets in two weeks, amid business uncertainties stemming from PresidentDonald Trump's trade policies and slower global growth.