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US Labor Market Faces Stagnation and Uncertainty in 2025-2026
22 days ago•Source: MarketWatch
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2.975 min•2 months ago
Federal Reserve's Rate Cuts: What They Mean for Your Finances and the Economy
Fed Chair Jerome Powell indicated that a rate cut in December is uncertain due to divided opinions among Fed officials and unclear economic data, leading markets to reduce expectations of a cut. The Fed recently cut rates by a quarter point, but future moves depend on upcoming economic data, with some officials advocating for caution amid mixed signals from the economy.
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Powell's Bold Moves and Market Reactions: A Closer Look
Originally Published 4 months ago — by MarketWatch
Federal Reserve Chair Jerome Powell signaled a potential interest rate cut in September to support the labor market amid concerns about employment and inflation, influenced by recent weak job growth data and the impact of tariffs, marking a strategic gamble to balance economic goals.
Fed Minutes Reveal Divided Views on Inflation and Rate Policies
Originally Published 4 months ago — by MarketWatch
Fed officials expect inflation to rise soon due to tariffs, with many believing consumers will bear the costs, while a few express concerns about persistent inflation; the outlook influences potential interest rate decisions amid economic uncertainties.
Trump's BLS Nominee Faces Scrutiny Over Jobs Report Suspension
Originally Published 5 months ago — by MarketWatch
Senior White House officials and experts affirm that the crucial monthly jobs report will continue to be produced despite proposals from some to suspend it, emphasizing its importance for economic decision-making and concerns over politicization and data reliability.
Fed Official Bowman Advocates for Rate Cuts Amid Dour Jobs Data
Originally Published 5 months ago — by MarketWatch
Fed Governor Michelle Bowman is advocating for faster interest rate cuts due to concerns over a weakening labor market and economic slowdown, signaling a potential shift in Fed policy ahead of the September meeting, with markets expecting a quarter-point reduction.
Bank of England narrowly cuts interest rates to 4% amid divided votes
Originally Published 5 months ago — by MarketWatch
The Bank of England's monetary policy committee was deeply divided over interest rate decisions, resulting in a split vote with four members for no change, four for a quarter-point cut, and one for a half-point cut, leading to a cautious rate reduction to 4%. The decision reflects ongoing concerns about economic growth, inflation, and global trade impacts, with market reactions indicating a hawkish stance despite the divided votes.
Trump narrows Fed chair contenders, Bessent out of the running
Originally Published 5 months ago — by MarketWatch
President Trump is narrowing down his choices for the next Federal Reserve Chair, favoring Kevin Hassett and Kevin Warsh, while ruling out Treasury Secretary Scott Bessent, and considering a short-term replacement for Fed Governor Adriana Kugler.
Powell's Speech Amid Market Turmoil and Political Tensions
Originally Published 5 months ago — by MarketWatch
Amid political tensions and Trump’s pressure on Fed Chair Powell, the upcoming Fed meeting is seen as pivotal, though no rate change is expected. The meeting occurs against a backdrop of Trump’s attempts to influence Fed independence, with market reactions hinging on Powell’s signals about future rate cuts, especially with upcoming economic data and Powell’s potential future at the Fed.
Rising Tariffs Signal Upcoming Price Hikes for Consumers
Originally Published 5 months ago — by MarketWatch
Economists from Harvard Business School found that Trump's tariffs have led to modest but quick price increases in imported goods, with a cumulative rise of about 3% since March, challenging claims from the Trump administration that tariffs do not significantly impact consumer prices.
U.S. Focuses on Quality over Deadlines in Tariff Negotiations
Originally Published 5 months ago — by MarketWatch
The Trump administration emphasizes that quality trade deals are more important than the August 1 tariff deadline, with officials providing conflicting views on whether tariffs will be implemented or delayed, amid ongoing negotiations and market speculation.
Fed Official Waller Supports July Rate Cut Amid Market and Political Pressures
Originally Published 5 months ago — by MarketWatch
Federal Reserve Governor Christopher Waller argues that the labor market is weaker than it appears, justifying an interest rate cut this month to prevent economic slowdown, despite most officials preferring to wait for more inflation data; he also downplays the impact of tariffs on inflation and suggests a potential additional rate cut later this year if inflation remains controlled.