Powell Indicates Increased Employment Risks, Suggests Possible Fed Rate Cuts

Reported 17 days ago

Federal Reserve Chair Jerome Powell stated that 'downside risks to employment appear to have risen,' hinting at potential interest rate cuts in upcoming meetings. Powell emphasized that the Fed's approach remains meeting-dependent and noted that data delays due to a government shutdown could complicate decision-making. He also mentioned the possibility of halting the Fed's balance sheet runoff as liquidity conditions tighten. Despite economic challenges, Powell reiterated that the Fed will not revert to pre-pandemic balance sheet levels.

Source: YAHOO

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