Federal Reserve Chair Jerome Powell has sparked surprise among economists by signaling the possibility of an interest-rate cut in September. The move is seen as a gamble aimed at supporting a labor market that’s facing growing challenges.
The unemployment rate has remained steady for most of the past year, with layoffs also low. However, companies are struggling to hire, and new entrants into the labor market are finding it hard to secure jobs. Powell described this situation as “curious” and expressed concerns at the central bank about the outlook for jobs.
Source: https://www.marketwatch.com/story/powell-just-gambled-big-in-jackson-hole-will-it-pay-off-ab1b64a4