Fed Chair Jay Powell on Wednesday again emphasized that he is paying closer attention to a cooling job market, another sign to market watchers that the central bank is inching closer to cutting interest rates.
“I think for a long time, we've had to focus heavily on the inflation mandate," Powell told House lawmakers, referring to one side of the central bank's dual charge to maintain both stable prices and maximum employment.
"But I think now we're getting to the place where the labor market is getting pretty much in balance to where it needs to be, and so we're looking at both sides.”
The Fed has held rates at their highest levels in 23 years for nearly a year in an effort to push inflation down.
Now, as inflation once again starts to cool, Powell is making it clear that the central bank is increasingly aware of the risks posed by a cooling labor market.