Job losses weigh on Powell’s rate cut call

Washington | US Federal Reserve chairman Jerome Powell said officials are increasingly wary of potential risks to the labour market from high borrowing costs as they seek more evidence inflation is slowing down.

Speaking to lawmakers on Tuesday (Wednesday AEST), Powell was careful not to offer a timeline for interest rate cuts, which investors are now betting will begin in September. But he emphasised mounting signs of a cooling job market after government data published July 5 showed a third straight month of rising unemployment.

Bloomberg