JACKSON HOLE, Wyo. -- Federal Reserve Chair Jerome Powell on Friday opened the door slightly to lowering a key interest rate in the coming months but gave no hint on the timing of a move and suggested the central bank will proceed cautiously as it continues to evaluate the effect of tariffs and other policies on the economy.
In a high-profile speech closely watched at the White House and on Wall Street, Powell said there are risks of both rising unemployment and stubbornly higher inflation. Yet he suggested that with hiring sluggish, the job market could weaken further.
"The shifting balance of risks may warrant adjusting our policy stance," he said, a reference to his concerns about weaker job gains and a more direct sign that the Fed is considering a rate cut than he made in previous comments.
Still, Powell's remarks suggest the Fed will proceed carefully in the coming months and will make its rate decisions based on how inflation and unemployment evolve. The Fed has three more meetings this year, including next month, in late October, and in December, and it's not clear whether the Fed will cut at all after those meetings.
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