Fed Chair Powell Signals Potential Preemptive Action Amid Labor Market Concerns

AI Summary

According to PANews, U.S. Federal Reserve Chair Jerome Powell has indicated that the central bank might need to take preemptive measures if a tight labor market threatens price stability. He emphasized that an uncertain estimate of employment exceeding its maximum sustainable level does not necessarily warrant a policy tightening. Following Powell's remarks, traders have fully priced in the expectation that the Federal Reserve will implement two rate cuts by the end of the year.