Fed Chair Powell worried about hiring slowdown — a sign more rate cuts are coming
Published on Tuesday, October 14, 2025 by New York Post Business | Found on Glideslope.ai
Despite the federal government shutdown cutting off official economic data, “the outlook for employment and inflation does not appear to have changed much since our September meeting,” Powell said.
Pulse AI Analysis
Fed Chair Jerome Powell expresses concerns about a significant hiring slowdown in the U.S., hinting at the potential for further interest rate cuts this year to support the economy. Despite a lack of fresh data due to the federal government shutdown, the employment and inflation outlook remains stable, yet Powell notes rising risks to employment. This anticipated monetary easing is expected to lower borrowing costs across various loans, potentially stimulating economic activities but also impacting long-term Treasury rates as the Fed may halt the reduction of its balance sheet.
### Key Market Implications:
- **Lower Borrowing Costs:** Anticipated rate cuts could make loans cheaper, potentially boosting consumer spending and real estate markets.
- **Stimulus to Economy:** Lower rates might help counteract the hiring slowdown, supporting broader economic stability.
- **Impact on Treasuries:** Pausing the reduction of the Fed's balance sheet might affect long-term Treasury yields, possibly keeping them lower than they might otherwise be.
- **Equities Boost:** Reduced rates often favor the stock market, as lower borrowing costs can improve corporate profits and investor sentiment.
- **Inflation Watch:** Despite current stability, continuous monitoring of inflation will be crucial, especially considering past criticisms of the Fed's policies potentially inflating asset prices.
### Key Market Implications:
- **Lower Borrowing Costs:** Anticipated rate cuts could make loans cheaper, potentially boosting consumer spending and real estate markets.
- **Stimulus to Economy:** Lower rates might help counteract the hiring slowdown, supporting broader economic stability.
- **Impact on Treasuries:** Pausing the reduction of the Fed's balance sheet might affect long-term Treasury yields, possibly keeping them lower than they might otherwise be.
- **Equities Boost:** Reduced rates often favor the stock market, as lower borrowing costs can improve corporate profits and investor sentiment.
- **Inflation Watch:** Despite current stability, continuous monitoring of inflation will be crucial, especially considering past criticisms of the Fed's policies potentially inflating asset prices.
Analysis: bearish
Score: -100.00
Score: -100.00
Sentiment Score: -100.00 - Very bearish.
This analysis was generated using Pulse AI, Glideslope's proprietary AI engine designed to interpret market sentiment and economic signals. Results are for informational purposes only and do not constitute financial advice.
