US Edition
Fed’s Powell suggests tightening program could end soon, offers no guidance on rates
- On Tuesday, Federal Reserve Chair Jerome Powell warned that rising risks to employment followed a sharp slowdown in job creation, while Fed officials forecast two more rate cuts this year.
- With official data paused by the shutdown, private sector employers show hiring slowed through August, partly due to lower immigration and declines in labor-force participation.
- Powell said `In this less dynamic and somewhat softer labor market, the downside risks to employment appear to have risen` and hinted the Fed may soon stop shrinking its roughly $6.6 trillion balance sheet while allowing $40 billion of Treasuries and MBS to mature monthly.
- Futures traders see a more than 95-percent chance the Fed will cut rates by an additional half percentage point this year, and lower rates could reduce borrowing costs for mortgages, car loans and business loans.
- Looking ahead, critics including Scott Bessent argue the Fed's bond purchases worsened inequality, while Powell defended them as market insurance, according to the story.
75 Articles
75 Articles
Spectrum Local News
Fed chair leaves door open for rate cuts as data less available amid shutdown
Powell cited numbers he said showed declines in both the labor supply and demand, potentially signaling that the Fed was on track to cut rates again.
A sharp slowdown in recruitment represents a growing risk to the U.S. economy, Federal Reserve President Jerome Powell said Tuesday, a sign that the agency is likely to lower its key interest rate twice this year. Powell said in written statements that, despite the federal government’s closure, which does not allow official economic data, “the prospects for employment and inflation do not seem to have changed much since our September meeting,” w…
InsideNoVA.com
US Fed chair flags concern about sharp slowdown in job creation
US Federal Reserve Chair Jerome Powell warned Tuesday that risks to employment had risen in recent months, noting there had been a sharp slowdown of job creation in the world's leading economy.
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