Federal Reserve Chairman Jerome Powell said recent data suggests they are returning to a disinflationary path and that an unexpected weakening in the labor market could trigger a policy reaction, macroeconomic analysts say. BBH.
Fed policy could soon shift
“Fed Chairman Jerome Powell said recent data ‘suggest that we are returning to a disinflationary path. What we would like to see is more of the data we’ve seen recently.’ He added that an unexpected weakening in the labor market could trigger a policy reaction.”
“On the other hand, Goolsbee said, ‘If employment starts to fall apart or the economy starts to weaken, which it has already shown some warning signs of, you have to balance that against the progress that’s being made on the price front. The unemployment rate is still fairly low, but it’s been creeping up.'”
“More and more Fed officials are expressing concern about the state of the labor market. We started to see this last week, when both Goolsbee and Daly hinted that Fed policy could soon shift.. Again, the Fed is certainly more concerned about the labor market than it has been in the past. If the data cooperate, we think a September rate cut remains very likely.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
