India, Oct. 30 -- US Federal Reserve Chair Jerome Powell said on Wednesday that he expects an ongoing government shutdown to bog down the world's biggest economy temporarily, after the central bank announced its second straight interest rate cut this year.

Powell said that the shutdown, now the second longest in US history, will weigh on economic activity as the stoppage also delays the release of economic data.

"The shutdown of the federal government will weigh on economic activity while it persists, but these effects should reverse after the shutdown ends," Powell told reporters in a press briefing after the rate cut announcement.

The Federal Reserve cut its key interest rate for a second time this year as it seeks to shore up econom...