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Powell signals support for further rate cuts as U.S. job market cools

Powell signals support for further rate cuts as U.S. job market cools

CointimeCointime2025/10/14 22:27
By:Cointime

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.

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