‘Direction Of Travel Is Clear’: Powell Announces Intent To Shift Fed Policy As Concerns Over Jobs Market Surges

Federal Reserve Chairman Jerome Powell showed concern regarding recent cooling in the labor market during a speech at the Federal Reserve Bank of Kansas City’s Jackson Hole Symposium on Friday.

Powell signaled that the Fed’s focus regarding its interest rate policy had shifted away from inflation to instead the weakening labor market following a disappointing jobs report for July and a Wednesday adjustment that revealed the Biden administration had overestimated previous jobs reports by nearly a million between April 2023 and March 2024. He also suggested a rate cut at the Federal Open Market Committee’s (FOMC) next meeting in September is likely, stating that it’s time for the Fed to change course.