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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.
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The president of the Federal Reserve (Fed, central bank), Jerome Powell, warned this Tuesday, October 14 that the risks to employment have increased in recent months in the United States, pointing to a sharp slowdown in job creation.Low unemployment to record levels.The cause is more a concern for Costa Rica than a cause for joyThe official data on employment have not yet been published for the month of September due to the current closure of th…
Spectrum Local News+2 Reposted by 2 other sources
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.
·United States
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Coverage Details
Total News Sources129
Leaning Left15Leaning Right16Center46Last UpdatedBias Distribution60% Center
Bias Distribution
- 60% of the sources are Center
60% Center
L 19%
C 60%
R 21%
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