TechFlow news, on October 15, according to Jinshi Data citing the Financial Times, Federal Reserve Chair Powell warned Tuesday that signs of further distress in the U.S. labor market have emerged, suggesting he may be ready to support another rate cut later this month. Powell stated: "Downside risks to employment have risen." This is the clearest signal yet that Fed officials believe they have sufficient evidence to justify another 25-basis-point reduction in U.S. borrowing costs.
Powell added that even without new data from the Bureau of Labor Statistics—delayed due to the government shutdown—privately produced labor market indicators and internal Fed research provide enough justification to show the job market is cooling.
"The existing evidence" shows that "layoffs and hiring remain low," while "households’ views on job availability and businesses’ perceptions of hiring difficulties continue to trend downward." These remarks indicate Powell has become more dovish on monetary policy.
