Fed's Powell points to persistent labor market weakness as government shutdown delays official reports

Core Viewpoint - The Federal Reserve Chair Jerome Powell indicated that the economy is experiencing a softening labor market, with delays in official jobs and inflation data due to the government shutdown [1][2]. Labor Market Conditions - Despite a low unemployment rate through August, payroll gains have significantly slowed, attributed to a decline in labor force growth from lower immigration and participation [3]. - Available evidence suggests that layoffs and hiring remain low, with both households' perceptions of job availability and firms' perceptions of hiring difficulty showing downward trends [3].