Fed Chair Jerome Powell signals job market
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The central bank retired a previous strategy and on Friday unveiled a new approach that updates how inflation and employment are balanced.
Inflation expectations derived from the bond market were rising on Friday, suggesting simmering concerns about future price gains despite Federal Reserve Chair Jerome Powell's willingness to consider cutting interest rates.
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Behind closed doors, officials at the Federal Reserve said much the same as they've said in public: that concerns over tariffs stoking inflation led them to keep the central bank's interest rate flat in July instead of cutting it.
While opening the door for a September interest rate cut, Fed Chair Jerome Powell stressed the central bank would not let inflation get out of control. While there are already signs that tariffs have begun to push up prices,
Most Federal Reserve officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month, as tariffs fueled a growing divide within the central bank’s rate-setting committee.
Federal Reserve Chair Jerome Powell's speech at the Jackson Hole conference on Friday comes amid the labor market showing signs of weakness and inflation ticking higher due to tariffs.