Fed warns of slowing jobs and higher unemployment after rate cut move
The Fed’s latest statement warns of slowing job gains and an uptick in unemployment, with markets eyeing more cuts ahead.
Key Takeaways
- The Federal Open Market Committee (FOMC) updated its statement to include concerns about worsening labor market conditions.
- The new language specifies that downside risks to employment have risen, jobs gains have slowed, and the unemployment rate has edged up.
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The Federal Open Market Committee cut interest rates by 25 basis points today and added new language about rising unemployment risks in its statement, underscoring concerns over the labor market’s deterioration.
The FOMC noted that “downside risks to employment have risen,” that “job gains have slowed,” and that the “unemployment rate has edged up.”
Analysts described the move as an insurance cut, with expectations that more rate reductions could follow.
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