The post Powell Flags Unemployment Risks as Futures Markets Expect More Rate Cuts appeared on BitcoinEthereumNews.com. Federal Reserve Chair Jerome Powell on Tuesday reiterated the central bank’s delicate balancing act, stressing that policymakers are trying to navigate between their price stability and employment mandates following last week’s interest rate cut. “Recent data show that the pace of economic growth has moderated,” Powell said in prepared remarks at the Greater Providence Chamber of Commerce’s economic outlook luncheon in Rhode Island, adding: The unemployment rate is low but has edged up. Job gains have slowed, and the downside risks to employment have risen. At the same time, inflation has risen recently and remains somewhat elevated. He added that a clearer trade policy means tariffs will likely trigger only a “one-time pass-through” effect on inflation. That may be interpreted as a slight shift from earlier warnings that tariffs could fuel more sustained cost pressures in the second half of the year. His comments echoed those of Vice Chair Michelle Bowman, who told the Kentucky Bankers Association’s annual convention on Tuesday: “The US economy has been resilient, but I am concerned about the weakening in labor market conditions and softer economic growth.” Powell cautioned that there is no risk-free path for interest rates, with elevated inflation on one side and rising unemployment on the other. He suggested, however, that the Fed is increasingly inclined to prioritize its employment mandate. The Federal Open Market Committee (FOMC) voted last week to lower interest rates by 25 basis points — the first cut in nine months and a move widely expected by markets. While Powell declined to comment on the likelihood of another reduction in October, expectations are high that the Fed will cut at its final two meetings of 2025. Fed funds futures are pricing in a strong likelihood of additional rate cuts in October and December. Source: CME Group DBS Bank… The post Powell Flags Unemployment Risks as Futures Markets Expect More Rate Cuts appeared on BitcoinEthereumNews.com. Federal Reserve Chair Jerome Powell on Tuesday reiterated the central bank’s delicate balancing act, stressing that policymakers are trying to navigate between their price stability and employment mandates following last week’s interest rate cut. “Recent data show that the pace of economic growth has moderated,” Powell said in prepared remarks at the Greater Providence Chamber of Commerce’s economic outlook luncheon in Rhode Island, adding: The unemployment rate is low but has edged up. Job gains have slowed, and the downside risks to employment have risen. At the same time, inflation has risen recently and remains somewhat elevated. He added that a clearer trade policy means tariffs will likely trigger only a “one-time pass-through” effect on inflation. That may be interpreted as a slight shift from earlier warnings that tariffs could fuel more sustained cost pressures in the second half of the year. His comments echoed those of Vice Chair Michelle Bowman, who told the Kentucky Bankers Association’s annual convention on Tuesday: “The US economy has been resilient, but I am concerned about the weakening in labor market conditions and softer economic growth.” Powell cautioned that there is no risk-free path for interest rates, with elevated inflation on one side and rising unemployment on the other. He suggested, however, that the Fed is increasingly inclined to prioritize its employment mandate. The Federal Open Market Committee (FOMC) voted last week to lower interest rates by 25 basis points — the first cut in nine months and a move widely expected by markets. While Powell declined to comment on the likelihood of another reduction in October, expectations are high that the Fed will cut at its final two meetings of 2025. Fed funds futures are pricing in a strong likelihood of additional rate cuts in October and December. Source: CME Group DBS Bank…