Fed Chair Powell Signals Possible Rate Cut Amid Labor Market Concerns

According to BlockBeats, Federal Reserve Chair Jerome Powell has indicated potential support for another interest rate cut later this month, citing signs of further distress in the U.S. labor market. Powell stated that the "downside risks to employment have increased," marking the strongest suggestion yet that Fed officials believe there is sufficient evidence to justify a 25 basis point reduction in U.S. borrowing costs. Powell noted that even without new data from the Bureau of Labor Statistics, delayed due to a government shutdown, private employment market indicators and internal Federal Reserve research provide ample reason to suggest a cooling job market. Existing evidence shows that "layoffs and hiring remain very low," while "household perceptions of job opportunities and business views on hiring difficulties continue to decline." These comments indicate a more dovish stance on monetary policy from Powell.