Powell Suggests Fed Is Shifting Policy Focus from Inflation to Employment

BlockBeats News, September 18th, Federal Reserve Chairman Powell emphasized that, given signs that the labor market is indeed "cooling off," and with a renewed focus on inflation in the long term, the Fed is leaning toward achieving "maximum employment" in its dual mandate. He mentioned that since April, the persistent risk of high inflation has somewhat diminished, partly due to slowing job growth. The Fed's basic assumption is that the impact of tariffs on inflation may be temporary. On the other hand, the downside risks to the labor market have increased, and the addition of new jobs seems to be below the so-called "breakeven rate" needed to maintain the unemployment rate. (FX168)