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Powell Signals Possible Rate Cuts Amid Hiring Slowdown

10/15/2025

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Summary

Powell Considers Rate Cuts

Federal Reserve Chair Jerome Powell said a hiring slowdown could prompt two more interest-rate cuts this year.
He noted inflation remains elevated at 2.9 percent, largely due to tariffs.
Powell said the government shutdown delayed crucial economic data.
He indicated the Fed is shifting toward supporting the labor market ahead of the October 28–29 meeting.
He added the outlook for employment and inflation has not materially changed since September.

Summary

Bowman Advocates Rate Cuts

Federal Reserve Vice Chairwoman Michelle Bowman supports two more rate cuts by the end of 2025, citing a weakening job market.
Bowman stated the Fed's rate cut to 4.00%-4.25% was the first since December and noted ongoing job losses and declining consumer spending.
The Fed's next meetings are scheduled for October 28-29 and December, with expectations for further rate reductions if trends continue.

History

Historical Context

The Federal Reserve's aggressive rate cuts began in 2007, reducing the federal funds rate from 5.25% to 2% by April 2008 amid the financial crisis. Unemployment peaked at 10% in October 2009, prompting further monetary interventions. Today, officials like Jerome Powell advocate for similar measures to address a weakening job market and inflation at 2.9%, highlighting ongoing economic challenges.

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Powell Considers Rate Cuts

Federal Reserve Chair Jerome Powell said a hiring slowdown could prompt two more interest-rate cuts this year.
He noted inflation remains elevated at 2.9 percent, largely due to tariffs.
Powell said the government shutdown delayed crucial economic data.
He indicated the Fed is shifting toward supporting the labor market ahead of the October 28–29 meeting.
He added the outlook for employment and inflation has not materially changed since September.

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