CoinVoice has recently learned that "Federal Reserve mouthpiece" Nick Timiraos wrote in the Wall Street Journal that Federal Reserve Chairman Powell made a subtle but important shift that brought the Fed closer to a rate cut. He said on Tuesday that a further cooling of the labor market might not be desirable.
"High inflation is not the only risk we face," Powell told the Senate Banking Committee on the first day of two days of testimony on Tuesday. "We have seen that the labor market has cooled significantly in many aspects and it is now not a source of broad inflationary pressures in the economy."
The assessment is notable because Fed officials have long viewed an overheated labor market as a major risk to the process of depressing inflation.
Powell acknowledged that he would not have made such a judgment two months ago. In fact, Powell's comments at a conference in Portugal last week before the release of the U.S. Labor Department's June employment report were more cautious. [Original link]
