Weak Job Market Prompted Interest Rate Cuts, Powell Says
The post Weak Job Market Prompted Interest Rate Cuts, Powell Says appeared on BitcoinEthereumNews.com. Topline Federal Reserve Chair Jerome Powell on Tuesday said a weakening labor market in the U.S. has outweighed concerns about growing inflation, prompting the central bank to lower interest rates last week for the first time in months amid pressure from President Donald Trump. A recent decision by the central bank leaves the U.S. “well-positioned” to respond to economic developments, Powell said. Copyright 2025 The Associated Press. All rights reserved. Key Facts Powell, during an address Tuesday in Providence, Rhode Island, said “near-term risks” to inflation are “tilted to the upside,” while employment risks are increasing and have shifted the Federal Reserve’s approach to monetary policy, despite presenting a “challenging situation.” The Fed’s policymaking panel voted 11-1 last week to lower interest rates, which were held between 4.25% and 4.5% since December, by a quarter-point to a new range between 4% and 4.25%. The U.S. labor market is experiencing a “marked slowdown” in supply and demand, Powell said, though he noted “uncertainty around the path of inflation remains high.” Powell also noted he believed the latest interest rate easement leaves the U.S. “well-positioned” to respond to economic developments. Fed Governor Michelle Bowman said earlier Tuesday she was “concerned” the labor market could enter a “precarious phase,” suggesting a “shock could tip it into a sudden and significant deterioration.” Bowman said she believed recent cuts to interest rates are the “first step” to return to neutral levels, though Powell did not signal whether the central bank would favor additional cuts at its upcoming meeting in October. What To Watch For Powell’s comments precede personal consumption expenditures (PCE) price index data, the Fed’s preferred inflation measurement, from the Bureau of Economic Analysis on Friday. Wall Street anticipates annual inflation to hit 3% in August, a 0.1% uptick from July, while headline PCE…
The post Weak Job Market Prompted Interest Rate Cuts, Powell Says appeared on BitcoinEthereumNews.com.
Topline Federal Reserve Chair Jerome Powell on Tuesday said a weakening labor market in the U.S. has outweighed concerns about growing inflation, prompting the central bank to lower interest rates last week for the first time in months amid pressure from President Donald Trump. A recent decision by the central bank leaves the U.S. “well-positioned” to respond to economic developments, Powell said. Copyright 2025 The Associated Press. All rights reserved. Key Facts Powell, during an address Tuesday in Providence, Rhode Island, said “near-term risks” to inflation are “tilted to the upside,” while employment risks are increasing and have shifted the Federal Reserve’s approach to monetary policy, despite presenting a “challenging situation.” The Fed’s policymaking panel voted 11-1 last week to lower interest rates, which were held between 4.25% and 4.5% since December, by a quarter-point to a new range between 4% and 4.25%. The U.S. labor market is experiencing a “marked slowdown” in supply and demand, Powell said, though he noted “uncertainty around the path of inflation remains high.” Powell also noted he believed the latest interest rate easement leaves the U.S. “well-positioned” to respond to economic developments. Fed Governor Michelle Bowman said earlier Tuesday she was “concerned” the labor market could enter a “precarious phase,” suggesting a “shock could tip it into a sudden and significant deterioration.” Bowman said she believed recent cuts to interest rates are the “first step” to return to neutral levels, though Powell did not signal whether the central bank would favor additional cuts at its upcoming meeting in October. What To Watch For Powell’s comments precede personal consumption expenditures (PCE) price index data, the Fed’s preferred inflation measurement, from the Bureau of Economic Analysis on Friday. Wall Street anticipates annual inflation to hit 3% in August, a 0.1% uptick from July, while headline PCE…
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