(VOVWORLD) - Federal Reserve (Fed) Chair Jerome Powell on Friday signaled a possible interest rate cut at the US central bank's meeting next month, saying that risks to the job market were rising but also noting inflation remained a threat.
 Federal Reserve Chair Jerome Powell (Photo:Xinhua/VNA) |
The labor market appears to be in balance that results from a marked slowing in both the supply of and demand for workers, Powell told the Fed's annual conference in Wyoming. This unusual situation suggests that downside risks to employment are rising, the Fed chief said, adding that while tariffs are expected to drive prices higher, the baseline case is for their impact on inflation to fade.
Powell's remarks drew new ire from President Donald Trump, who has been pushing Fed to slash rates immediately to support the housing industry.
Most Fed officials said in July the threat of higher inflation from President Trump’s tariffs was a greater concern than the potential for job losses. Despite pressure from the White House, the Federal Open Market Committee will hold interest rates steady at 4.25-4.5%.