Powell Hints at Further Rate Cut Support as U.S. Job Market Cools

BlockBeats News, October 15th, according to the Financial Times report, Federal Reserve Chairman Powell warned on Tuesday that the US labor market is showing further signs of distress, suggesting he may be ready to support another rate cut later this month. Powell pointed out: "The downside risks to employment have increased." This is the strongest hint so far that indicates Fed officials believe they have enough evidence to support another 25 basis point cut in the US borrowing cost.

Powell added that even without new data from the Labor Department (delayed due to the government shutdown), privately produced labor market indicators and internal Fed research provide enough reason to believe that the job market is cooling off.

"The existing evidence" suggests that "layoffs and hiring are still low," while "households' views on job opportunities and businesses' views on recruiting difficulties continue to decline." These remarks indicate that Powell is becoming more dovish on monetary policy. (FXStreet)