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
Powell sees signs of crisis
Powell's primary motivation for halting quantitative tightening is to prevent a liquidity crisis in the financial markets.

Glassnode: Bitcoin options market shows premium concentration at $115K–$130K

Ethereum Looks Ready – Key Support Holds As Bulls Aim Fresh Upside Push

Key Market Intelligence for October 15: How Much Did You Miss?
1. On-chain funds: $142.3M flowed into Arbitrum today; $126.7M flowed out of Hyperliquid. 2. Top gainers and losers: $CLO, $H. 3. Top news: Base co-founder reiterated that the Base token is about to launch.
