Federal Reserve Chair monitoring cooling inflation before considering rate cuts; labor market remains solid.

From The New York Times: 2024-07-05 14:12:49

Federal Reserve Chair, Jerome H. Powell, stated that officials are monitoring cooling inflation data before considering cutting rates. The labor market has remained robust, but officials are wary of potential cracks, particularly as fewer jobs go unfilled. Policymakers have maintained interest rates at 5.3%, aiming to control rapid inflation. However, the Fed is prepared to react to unexpected labor market softening by slashing borrowing costs. Employment reports will be crucial for central bankers and investors assessing future Fed actions. Recent signals of job market cooling have shifted the Fed’s focus, with officials closely watching for any dramatic rise in unemployment rates that could signal a recession.



Read more at The New York Times: U.S. Job Growth Remains Solid