Fed Chair Warns the Economy Is Worse Than We Realized
9 hours ago
- #employment
- #inflation
- #economy
- Fed Chair Jerome Powell warns of a 'much larger' slowdown in the jobs market than initially reported.
- The U.S. economy faces a 'challenging situation' due to tariff-driven inflation and a hiring downturn.
- Powell highlights a 'curious kind of balance' from slowdowns in both worker supply and demand.
- Downside risks to employment are rising, with potential for sharp layoffs and rising unemployment.
- July jobs report revised previous months' data, showing a three-month growth average of 35,000—lowest since 2010 (excluding pandemic).
- Job growth slowdown is larger than assessed a month ago, with substantial downward revisions for May and June.
- Labor force growth has slowed due to reduced immigration, and participation rates have edged down.
- Trump’s tariffs are visibly affecting consumer prices, with further price increases expected in coming months.