Fed Chairman Signals US Interest Rate Cut

Federal Reserve Chairman Jerome Powell left the door open on Friday 22 to the possibility of lowering interest rates , but warned that the risks of higher inflation and a slowdown in the labor market are creating a complex situation.

“The risks to downside employment are increasing,” Powell said during the Economic Policy Symposium in Jackson Hole.

"Although the labor market appears to be in balance, it is a curious balance, resulting from a marked slowdown in both the supply and demand for workers," the head of the US central bank said in his speech.

Powell has been criticizing the economic policies of President Donald Trump's administration on several fronts.

“The effects of customs tariffs on consumer prices are already clearly visible” and could be even more severe in the coming months, he said.

In his opinion, there is great uncertainty about the timing and magnitude of the effects of the increase in customs tariffs.

“We will not allow a one-off increase in the price level to become a problem of persistent inflation,” he said.