Powell hinted at supporting another rate cut later this month as the U.S. job market cools

ChainCatcher news, Federal Reserve Chairman Powell warned on Tuesday that the U.S. labor market shows further signs of distress, suggesting he may be prepared to support another interest rate cut later this month. Powell noted, "The downside risks to employment have risen." This is the strongest hint so far that Federal Reserve officials believe they have enough evidence to support a 25 basis point cut in U.S. borrowing costs again.

Powell added that even without new labor statistics (delayed due to the government shutdown), privately produced employment market indicators and internal Fed research provide sufficient reasons indicating that the job market is cooling. "Existing evidence" suggests that "layoffs and hiring numbers remain low," while "households' perceptions of job opportunities and businesses' views on hiring difficulties continue to decline." These remarks indicate that Powell is becoming more dovish on monetary policy. (Jin Shi)