Fed's Powell and Bowman stress job market fragility as more rate cuts loom
Fed Chair Jerome Powell warned of labor market weakness after Fed’s first rate cut in nine months, as futures markets bet on more easing ahead.
Federal Reserve Chair Jerome Powell on Tuesday reiterated the central bank’s delicate balancing act, stressing that policymakers are trying to navigate between their price stability and employment mandates following last week’s interest rate cut.
“Recent data show that the pace of economic growth has moderated,” Powell said in prepared remarks at the Greater Providence Chamber of Commerce’s economic outlook luncheon in Rhode Island, adding:
He added that clearer trade policy means tariffs will likely trigger only a “one-time pass-through” effect on inflation. That may be interpreted as a slight shift from earlier warnings that tariffs could fuel more sustained cost pressures in the second half of the year.
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