REUTERS.COM: Fed chief cites jobs risk even with ongoing inflation concern / Powell says base case is for tariff inflation impact to be short-lived / He sees job market in 'curious balance' that could change fast
JACKSON HOLE, Wyoming, Aug 22 (Reuters) - Federal Reserve Chair Jerome Powell on Friday pointed to a possible interest rate cut at the U.S. central bank's meeting next month, but stopped short of committing to it, in remarks acknowledging both the growing risks to the job market and ongoing threat of higher inflation.
"While the labor market appears to be in balance, it is a curious kind of balance that results from a marked slowing in both the supply of and demand for workers. This unusual situation suggests that downside risks to employment are rising. And if those risks materialize, they can do so quickly," Powell told an audience of international economists and policymakers at the Fed's annual Jackson Hole conference in Wyoming. "It is also possible, however, that the upward pressure on prices from tariffs could spur a more lasting inflation dynamic, and that is a risk to be assessed and managed." » | Howard Schneider and Ann Saphir | Friday, August 22, 2025
