Fed's Powell highlights slowing job market in signal that rate cuts may be nearing
The Federal Reserve faces a cooling job market as well as persistently high prices, Chair Jerome Powell said in testimony to Congress, a shift in emphasis away from the Fed’s single-minded fight against inflation that suggests it's moving closer to cutting interest rates
By CHRISTOPHER RUGABER
Published - Jul 09, 2024, 12:57 PM ET
Last Updated - Jul 09, 2024, 12:57 PM EDT
WASHINGTON (AP) — The Federal Reserve faces a cooling job market as well as persistently high prices, Chair Jerome Powell said in testimony Tuesday to Congress, a shift in emphasis away from the Fed's single-minded fight against inflation of the past two years that suggests it is moving closer to cutting interest rates.
"Inflation has eased notably” in the past two years, he added, though it still remains above the central bank’s 2% target.
Powell pointedly noted that “elevated inflation is not the only risk we face." Cutting interest rates “too late or too little could unduly weaken economic activity and employment,” he said.
