Fed Chair Hints at Potential Rate Cut Amid Labor Market Concerns

Federal Reserve Chairman Jerome Powell has signaled potential support for another interest rate cut later this month, citing increasing concerns about the U.S. labor market. In a recent statement, Powell emphasized that ‘downside risks to employment have increased,’ marking his strongest indication yet that sufficient evidence exists for a 25 basis point reduction in U.S. borrowing costs. This suggestion comes despite the delayed Bureau of Labor Statistics data due to the government shutdown.