While speaking at a panel organized by the Swiss Institute of International Studies (SIAF), University of Zurich, Jerome Powell, Chairman of the Federal Reserve System, argued that central banks will have less ability to support economic in a downturn. "Lower rates and lower inflation is the biggest challenge for central banks in the new landscape," Powell noted. "Current implication is that central banks will have less ability to counter a downturn by cutting rates in future." The market reaction is fairly muted to Powell's remarks and the US Dollar Index was virtually flat on the day at 98.37. (full story)