Fed Chair Powell Keeps Door Open For Interest Rate Cuts

Core Insights - Financial markets anticipate further interest rate cuts by the Federal Reserve, supported by remarks from Fed Chair Jerome Powell [2][3] - Powell indicated that the current inflation and unemployment outlook remains consistent with data from September, prior to the Fed's last rate cut [3][4] - The government shutdown has limited access to crucial economic data, yet Powell remains optimistic about the job market and inflation trends [5][7] Economic Data and Impact - The government shutdown has halted the release of key economic reports, including the Bureau of Labor Statistics' job creation report for September, which could impact Fed decision-making [5][7] - Powell noted that the Fed is relying on alternative data sources, such as private company reports and internal surveys, due to the lack of comprehensive government data [7] - The upcoming Consumer Price Index report for September, scheduled for release on October 24, is a notable exception to the data blackout [5] Interest Rate Strategy - Powell's comments suggest a willingness to cut interest rates to support the job market, which is showing signs of deterioration [8] - The Fed faces a dilemma between stimulating the economy through rate cuts and controlling inflation, which has been influenced by tariffs [9] - Analysts perceive Powell's remarks as leaning towards a dovish stance, indicating potential for more rate cuts in the near future [10]