Powell signals support for further rate cuts as U.S. job market cools
Federal Reserve Chairman Powell warned on Tuesday that the U.S. labor market is showing further signs of distress, suggesting he may be prepared to support another rate cut later this month. Powell pointed out, "The downside risks to employment have increased." This is the strongest hint so far that Fed officials believe they have enough evidence to support another 25 basis point cut in U.S. borrowing costs. Powell added that even without new data from the Labor Department (delayed due to the government shutdown), private sector employment indicators and internal Fed research provide enough reason to suggest that the labor market is cooling off. "The available evidence" suggests that "layoffs and hiring are still low," while "household perceptions of job opportunities and businesses' perceptions of hiring difficulties continue to decline." These comments indicate that Powell is becoming more dovish on monetary policy.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Paramount SkyDance (PSKY.US) Nears Settlement Agreement to Advance $110 Billion Warner Acquisition, But Some State Attorneys General Still Withhold Support
According to reports, Paramount is engaged in in-depth negotiations with state attorneys general to facilitate the completion of its $110 billion acquisition of Warner Bros. Discovery; however, not all state attorneys general support this plan.
More Hawkish Than Market Consensus! JPMorgan: South Korea Interest Rates Targeted at 3.75%, Terminal Rate ‘Ceiling’ Undetermined
JPMorgan believes that if semiconductor-driven growth triggers stronger inflation and credit and financial markets remain stable, its already above-market-consensus forecast for South Korea's interest rates will face upside risks.
Ackman "Switches Holdings" to AI Giants: Sells All Alphabet (GOOGL.US) Shares, Increases Meta (META.US) Holdings—Should Investors Follow?
Ackman made it clear that this is not a bearish outlook on Alphabet, but rather a decision to shift funds to other, more attractive opportunities given the current valuation.
