Powell Signals Another Cut as Weak Hiring Pressures Unemployment

Federal Reserve Chair Jerome Powell hinted at another interest rate cut later this month, despite the government shutdown's impact on the central bank's ability to assess the economy accurately. Weak hiring and rising unemployment pressures have prompted the Fed's consideration of a rate reduction. Powell acknowledged the challenge of making monetary policy decisions amidst limited economic data due to the partial government shutdown. However, he highlighted that the labor market remains strong, though weakening hiring trends and elevated unemployment levels point to the need for further stimulus. The Fed's policy shift towards a more dovish stance reflects its concerns about slowing economic growth and the potential risks to the US economy. The upcoming rate cut is expected to provide a cushion against these emerging headwinds and support continued expansion. The central bank's decision-making will be closely watched by markets and policymakers as it navigates the evolving economic landscape.