Federal Reserve Chair Jerome Powell used his Jackson Hole speech to signal that the central bank is preparing to cut rates in September. Markets welcomed the prospect, with equities rising and yields slipping. Yet the cheer masked the harder message: the Fed is trying to hold its footing on narrowing ground, with rising job market risks on one side and persistent inflation on the other.Powell described the labour market as in a “curious kind of balance,” shaped by a simultaneous slowdown in both demand for and supply of workers. That dynamic has dulled the hiring engine that powered the post-pandemic rebound, leaving employment more exposed to sudden shocks.
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