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Risk has changed from higher inflation to labor market, says Fed Chair Powell
Youtubeยท 2025-10-29 19:05
Group 1 - The Federal Reserve has not made a decision regarding a policy rate reduction at the upcoming December meeting, indicating that market assumptions of a rate cut are premature [1][3] - There are strong differing views among committee members regarding the balance of risks between inflation and labor market conditions, highlighting the complexity of the current economic situation [2][4] - The recent data suggests a shift in risks, with higher downside risks to the labor market than previously anticipated, prompting a reevaluation of the policy stance towards a more neutral position [4][5] Group 2 - The committee is considering the need to balance its dual goals of controlling inflation and supporting employment, which may require adjustments to the policy rate depending on future data [5] - The approach to risk management is evolving, with the committee recognizing the need to adapt its strategy based on changing economic indicators [3][5]