Goldman Sachs – Powell warns of rising job market dangers as GDP progress slows
Goldman Sachs chief economist Jan Hatzius highlighted Fed Chair Jerome Powell’s cautious tone, noting Powell described the labor market as being in “a curious type of steadiness” the place each provide and demand for employees have slowed in tandem. Powell warned that the draw back dangers to employment are rising, with the potential for these dangers to materialize rapidly by sharply greater layoffs and a leap in unemployment.
Powell additionally acknowledged that GDP progress has slowed notably, although he prompt a part of the weak point displays a deceleration in potential output slightly than purely cyclical demand pressures.
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Hatzius was referencing Federal Reserve Chair Powell’s speech on Friday at Jackosn Gap. Extra yere:
- investingLive Americas FX information wrap 22 Aug: Markets cheer on Powell tilt (for now)
The Federal Reserve’s Federal Open Market Committee (FOMC) subsequent meet on September 16-17 the place a 25bp Fed Funds fee is extensively anticipated.
This text was written by Aaron Cutchburt at investinglive.com.
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