Powell Warns Job Slowdown Threatens U.S. Economy, Signals Two More Fed Rate Cuts Likely This Year

Benzinga

Fed Chair Jerome Powell warned that slowing job growth threatens the economy, reinforcing expectations for two more rate cuts this year. He said tariffs lifted inflation to 2.9% but broader pressures remain contained.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Federal Reserve Chair Jerome Powell warned Tuesday that slowing job growth poses a growing

00:06risk to the U.S. economy, reinforcing expectations for two more interest rate cuts this year,

00:11and according to the AP. Speaking in Philadelphia, Powell said employment and inflation trends

00:15have not changed much since the Fed's September meeting, when it cut rates for the first time

00:19in 2025. He noted tariffs have pushed inflation to 2.9 percent and said there are no broader

00:25price pressures. Powell said the Fed may soon end its policy of reducing its $6.6 trillion

00:30balance sheet by letting $40 billion in bonds and securities expire each month. Treasury

00:36yields slipped slightly following his remarks, with economists saying the comments confirm

00:39rate cuts are likely in the Fed's next meeting on October 28th and 29th.

00:44For all things money, visit Benzinga.com.

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