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🚨🚨 Powell Signals More Rate Cuts Ahead as Labor Market Weakens🚨🚨 Federal Reserve Chair Jerome Powell's speech at the National Association for Business Economics meeting in Philadelphia highlighted growing concerns about the labor market, signaling the possibility of two more quarter-point interest rate cuts in 2025. Powell pointed out that labor market conditions have worsened, with layoffs and hiring remaining low, and both households' and firms' perceptions of job availability and hiring difficulty sinking. This weakening labor market outlook supports market expectations for additional Fed rate cuts, following the quarter-point reduction already implemented earlier this year. Powell emphasized the Fed’s cautious approach amid economic uncertainty, including delayed official data releases due to the federal shutdown. Despite stronger-than-expected growth and a productivity surge in some areas like AI investment, the overall economic foundation remains narrow and fragile. Inflation remains above the Fed's 2% target, but signs show it may ease after temporary tariff impacts subside. Given this mixed outlook, policymakers appear divided, but Powell’s message underscores the Fed’s readiness to ease policy further to support employment while continuing to monitor inflation dynamics closely. This stance sets the stage for anticipated 25 basis-point rate cuts at the October and December Federal Open Market Committee meetings, reflecting the Federal Reserve's balancing act between fostering labor market stability and controlling inflation. #PowellRemarks